WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/CGR/38 
WT/MIN(11)/7 5 December 2011 
 
(11-6325) 
Working Party on the 
Accession of Montenegro  
 
 
 
REPORT OF THE WORKING PARTY ON THE  
ACCESSION OF MONTENEGRO  
TO THE WORLD TRADE ORGANIZATION 
  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 TABLE OF CONTENTS 
 
I.  INTRODUCTION .................................................................................................................. .. 1 
DOCUMENTATION PROVIDED ...................................................................................................... 1  
INTRODUCTORY STATEMENTS .................................................................................................... 1  
II.  ECONOMIC POLICIES .......................................................................................................... 2  
-  Monetary and Fiscal Policy .................................................................................................... .. 2 
-  Foreign Exchange and Payments ............................................................................................ 3  
-  Investment Regime.............................................................................................................. ...... 4 
-  State Ownership and Privatization, State-Trading Entities ................................................. 7  
-  Pricing Policies .............................................................................................................. .......... 11 
-  Competitio n Policy ............................................................................................................ ...... 13 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES .................................... 13  
-  Powers of Executive, Legislative and Judicial Branches of Government .......................... 13  
-  Authority of Sub-Central Governments ............................................................................... 15  
IV.  POLICIES AFFECTING TRADE IN GOODS ................................................................... 16  
-  Trading Rights ................................................................................................................ ........ 16 
A.  IMPORT REGULATIONS .................................................................................................... 21  
-  Ordinary customs duties ....................................................................................................... . 21 
-  Other duties and charges ...................................................................................................... .. 23 
-  Tariff rate quotas, tariff exemptions ..................................................................................... 23  
-  Fees and charges for services rendered ................................................................................. 24  
-  Application of internal  taxes to imports ............................................................................... 25  
-  Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ....................................................................................................................... .............. 29  
-  Customs valuation ............................................................................................................. ...... 33 
-  Rules of origin ............................................................................................................... .......... 35 
-  Other customs formalities ..................................................................................................... . 36 
-  Preshipment inspection ........................................................................................................ .. 36 
-  Anti-dumping, countervailing duties, safeguard regimes ................................................... 36  
B.  EXPORT REGULATIONS ................................................................................................... 37  
-  Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports .............................................................................................................. .......... 37 
-  Export restri ctions ........................................................................................................... ....... 37 
-  Export subsidies .............................................................................................................. ........ 39 
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 39  
-  Industrial policy, including subsidies .................................................................................... 39  
-  Technical barriers to trade, standards and certification ..................................................... 40  
-  Sanitary and phytosanitary measures ................................................................................... 46  
-  Trade-related investment measures ...................................................................................... 50  
-  Free zones, special economic areas ........................................................................................ 50  
-  Government procurement ...................................................................................................... 5 2 WT/ACC/CGR/38 
WT/MIN(11)/7 Page ii 
 
 
 -  Transit ....................................................................................................................... ............... 53  
-  Agricultural policies.......................................................................................................... ...... 53 
(a)  Imports ....................................................................................................................... .............. 53  
(b)  Exports ....................................................................................................................... .............. 54  
(c)  Internal policies ............................................................................................................. .......... 54 
-  Trade in ci vil aircraft ....................................................................................................... ....... 55 
-  Textiles regime ............................................................................................................... ......... 55 
V.  TRADE-RELATED INTELLECTUAL  PROPERTY REGIME ....................................... 55  
-  GENERAL ....................................................................................................................... ........ 55 
-  Industrial property protection ............................................................................................... 55 
-  Responsible agencies for policy formulation and implementation ..................................... 56  
-  Participation in international intellectual property agreements ........................................ 56  
-  Application of national and MFN treatment to foreign nationals ...................................... 57  
-  Fees and taxes ................................................................................................................ .......... 57 
-  SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ........................................................................... 58  
-  Copyright and related rights ..................................................................................................  58 
-  Trademarks, including service marks ................................................................................... 60  
-  Geographical indications, including appellations of origin ................................................. 61  
-  Industrial designs ............................................................................................................ ........ 63 
-  Patents ....................................................................................................................... ............... 64  
-  Plant variety protection ...................................................................................................... .... 66 
-  Layout designs of integrated circuits .................................................................................... 66  
-  Requirements on undisclosed information, in cluding trade secrets and test data ............ 66  
-  MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS ........................................................................................................................ ........... 67  
-  ENFORCEMENT ...................................................................................................................  67 
-  Civil judicial procedures and remedies ................................................................................. 67  
-  Provisional measures .......................................................................................................... .... 68 
-  Administrative procedures and remedies ............................................................................. 69  
-  Special border measures ....................................................................................................... .. 69 
-  Criminal procedures ........................................................................................................... .... 70 
VI.  POLICIES AFFECTING TRADE IN SERVICES .............................................................. 71  
VII. TRANSPARENCY ................................................................................................................. 74 
-  Publication of information on trade ...................................................................................... 74  
-  Notifications ................................................................................................................. ............ 74  
VIII. TRADE AGREEMENTS ....................................................................................................... 74  
CONCLUSIONS ................................................................................................................... ............... 76  
ANNEX 1 ....................................................................................................................... ....................... 77  
ANNEX 2 ....................................................................................................................... ....................... 81   WT/ACC/CGR/38 
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 I. INTRODUCTION 
1. The Government of Montenegro applied for accession to the World Trade Organization on 
23 December 2004.  At its meeting on 15 Febr uary 2005, the General Council established a 
Working Party to examine the application of the G overnment of Montenegro to accede to the World 
Trade Organization under Article XII of the Marrake sh Agreement establishing the WTO.  The terms 
of reference and the membership of the Working Party are reproduced in document 
WT/ACC/CGR/2/Rev.14.   
2. The Working Party met on 4 October 2005 under the Chairmanship of H.E. Mr. A. Gosnar 
(Slovenia); and on 5 July 2006; 27 February and 19 July 2007; and 28 February, 18 July and 
7 November 2008; and 5 December 2011 under the Chairm anship of H.E. Mr. A. Logar (Slovenia).   
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Montenegro (WT/ACC/ CGR/3 and WT/ACC/CGR/3/Add. 1), the questions 
submitted by Members on the foreign trade regime of Montenegro, together with the replies thereto, 
and other information provided by the authorities of Montenegro (WT/ACC/CGR/4 and 
WT/ACC/CGR/4/Corr.1; WT/ACC/CGR/7; WT/ACC/CGR/8; WT/ACC/CGR/10; WT/ACC/CGR/12 and WT/ACC/CGR/12/Rev.1, WT/ACC/CG R/12/Rev.2, WT/ACC/CGR/12/Rev.3, 
WT/ACC/CGR/12/Rev.4 and WT/ACC/CGR/12/Rev.5; WT/ACC/CGR/13; WT/ACC/CGR/14; WT/ACC/CGR/15, WT/ACC/CGR/15/Add.1 and WT/ACC/CGR/15/Add.2; WT/ACC/CGR/16; 
WT/ACC/CGR/17; WT/ACC/CGR/18 and WT/ACC/CGR/18/Rev.1; WT/ACC/CGR/19 and 
WT/ACC/CGR/19/Rev.1; WT/ACC/CGR/20; WT/ACC/CGR/21; WT/ACC/CGR/23; 
WT/ACC/CGR/24 and WT/ACC/CGR/24/Add.3;  WT/ACC/CGR/26; WT/ACC/CGR/27 and 
WT/ACC/CGR/27/Add.1; WT/ACC/CGR/28 and WT/ACC/CGR/28/Add.2; WT/ACC/CGR/29; and WT/ACC/CGR/30) including the legislative texts and other documentation listed in Annex 1.   
INTRODUCTORY STATEMENTS 
4. The representative of Montenegro said that WT O accession was one of the main priorities of 
the Government of Montenegro.  She noted that  although WTO rules and procedures had allowed 
Montenegro to initiate the accession process under the provisions of Article XII of the 
Marrakesh Agreement as a "separate customs te rritory", Montenegro had - on the basis of a 
referendum held on 21 May 2006 - become a fully independent State assuming full responsibility for 
its political, security and economic system.  Monten egro had become a Member of the United Nations 
on 28 June 2006, and had joined all relevant  UN-related internati onal organizations.  
On 4 December 2006, the Government had depos ited a declaration with WIPO regarding the 
continued applicability of all relevant WIPO  international conventions and treaties.  
5. On 3 June 2006, as Montenegro's Parliament had declared the independence of the 
Republic of Montenegro, it had also prescribed that all laws enacted by the former State Union of 
Serbia and Montenegro would continue to be applied in Montenegro.  Thus, Montenegro was 
undertaking to implement former State Union laws in the areas of TBT and intellectual property, and 
was developing the institutional capacity to d eal with these matters.  She acknowledged that 
additional efforts would be needed to establish a system of technical regulations and standards 
meeting the requirements of the WTO TBT and SPS Agreements.  In other areas, Montenegro stood ready to make amendments and other changes as de ficiencies in Montenegro's laws and regulations 
were being identified by Members.   WT/ACC/CGR/38 
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 6. She noted that much work had already been acco mplished on the legislative front.  Virtually 
all necessary legislation had been passed to br ing Montenegro into fu ll compliance with the 
WTO TRIPS Agreement.  The Customs Law had been applied and amended since 2003 (RM OG Nos. 07/02, 38/02, 72/02, 21/03, 29/05, 66/06; OG MNE No. 21/08) along with the Decree on 
Implementation of the Customs Law (RM OG Nos. 15/03 and 81/06; OG MNE No. 38/08).  
Montenegro had enacted a Customs Tari ff Law (RM OG No. 17/07) and the Decree on 
Harmonization of Customs Tariff in 2011 (OG MNE Nos. 79/10 and 31/11).  A Foreign Trade Law (RM OG Nos. 28/04 and 37/07) and the Decree on Implementation of Foreign Trade Law (RM OG 
Nos. 52/04 and 44/07) had also been implemented.   A Foreign Investment Law (OG MNE No. 18/11) 
and a Free Zones Law (OG MNE Nos. 42/04, 11/07, 76/08, 73/10 and 40/11) had been introduced to 
stimulate the economy.  Most of the economy had b een privatized, and her Government was in the 
process of privatizing the remaining large State-owne d enterprises.  She further stated that, upon the 
proposal from the Privatization and Capital Inve stment Council, the Government had adopted a 
Privatization Plan for 2011 (see also on Section "S tate Ownership and Privatization, State-Trading 
Entities").   
7. Members of the WTO welcomed the applica tion from Montenegro to join the WTO and 
looked forward to a rapid accession on appropriate  terms and conditions.  Members appreciated 
Montenegro's willingness to comply with WTO rules and principles, noting that further work would be required to improve the legal framework and to strengthen Montenegro's institutions to implement 
and enforce WTO rules.  Some Members also pointed  out that Montenegro would need to eliminate 
some WTO-inconsistent measures.   
8. The Working Party reviewed the economic policie s and foreign trade regime of Montenegro 
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by 
members of the Working Party on the various aspects  of Montenegro's foreign trade regime and on 
the terms and conditions of Montenegro's ac cession to the WTO are summarized below in 
paragraphs 9 to 280.   
II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 
9. The representative of Montenegro said that the Central Bank of Montenegro had been 
established as an independent institution with ex clusive responsibility to carry out Montenegro's 
monetary policy.  Pursuant to the new Constitutio n of Montenegro, the Central Bank was responsible 
for ensuring financial stability and supervising the banking sector.  The role of the Central Bank in 
this regard was nevertheless lim ited as Montenegro had adopted the Euro as its currency from the 
time the Euro had come into circulation on 1 January  2002.  Inflation in Montenegro was therefore 
primarily the result of imported inflation and supply-side shocks.   
10. According to the Law on the Central Bank of Montenegro, the Central Bank was also 
entrusted with the task of maintaining banking stabili ty as well as an efficient payments system in the 
Republic.  The banking sector had been reformed th rough restructuring and privatization, and the 
arrival of foreign-owned banks.  The Central Bank had adopted an extensive regulatory framework to 
govern the operations of commercial banks in Mont enegro, including some 35 by-laws addressing the 
supervision of banks and an additional seven by-l aws governing financial and banking operations.  
The payments system, originally centralized w ithin the Central Bank of Montenegro, had been 
operated through the commercial ba nks since 5 January 2004.   
11. Concerning the fiscal policy, the representative of Montenegro said that Montenegro had 
undertaken comprehensive fiscal reforms since 2001 in consultation with the World Bank and the  WT/ACC/CGR/38 
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 International Monetary Fund.  Seve ral laws had been adopted to establish a more transparent system 
of taxation and expenditures and to enhance reve nue collection, notably a Law on Budget (RM OG 
Nos. 40/01 and 44/01) establishing the Treasury of th e Republic of Montenegro, the Law on Public 
Procurement (RM OG No. 40/01), the Law on Tax Administration (RM OG Nos. 65/01, 80/04 and 
29/05; OG MNE No. 20/11), the Law on Local Self-Government Financing (RM OG Nos. 42/03 and 
44/03; OG MNE Nos. 05/08 and 74/10), and the Law on Supreme Financial Institution for Auditing 
(RM OG No. 28/04).  The Supreme Financial Instituti on for Auditing verified the collection and use 
of public revenue, as well as the management of State property.  A medium-term framework for 
budget expenditures had been introduced in the Budget Law for 2003 to improve the management of 
public expenditure, and the concept of programme budgeting was being devel oped.  Other measures 
included the introduction of fiscal cash registers a nd tax identification numbers.  The population had 
submitted tax declarations for the first time in January 2003.   
12. At present, taxes were levied on the basis of the Law on Corporate Profit Tax 
(RM OG Nos. 65/01, 12/02, 80/04 and 40/08; OG MNE No. 86/09) as amended in December 2004; 
the Law on Personal Income Tax (RM OG Nos. 65/01, 12/02, 37/04, 29/05, 78/06 and 04/07; 
OG MNE Nos. 86/09 and 40/11) and the Law on Amendments to the Law on Personal Income Tax (RM OG Nos. 37/04, 29/05, 78/06 and 04/07); the Law on Value Added Tax (RM OG Nos. 65/01, 
38/02, 72/02, 21/03, 76/05 and 04/06; OG MNE No. 16/07); the Law on Excise Tax (RM OG Nos. 65/01, 12/02 and 76/05; OG MNE Nos. 76/08, 50/09 and 78/10); the Law on Administrative Fees (RM OG Nos. 55/03, 46/04, 81/05, 02/06; OG MNE Nos. 22/08, 77/08, 03/09, 
40/10 and 20/11); the Law on Sales Tax for U sed Motor Vehicles, Vessels and Aircrafts 
(RM OG No. 55/03); and the Law on Real Estate Tax (RM OG Nos. 65/01 and 69/03; OG MNE No. 75/10).  The corporate profit tax was levied at a flat rate of 9 per cent.  The variable rate of the personal income tax had been replaced  by a flat rate under the 2006 amendments of the 
Law on Personal Income Tax (RM OG No. 78/06).  The personal income tax would amount to 
15 per cent in 2007 and 2008, 12 per cent in 2009 and 9 per cent as of 2010.  A sales tax had been 
replaced by value added tax in April 2003.  Exci se taxes were currently applied to alcoholic 
beverages, tobacco and petroleum products.  The r eal estate tax, levied on the market value of 
properties, was collected by the municipalities.  Article 6 of the Law on Local Self-Government Financing authorized municipalities to levy a surtax on personal income, the real estate tax, and a tax 
on vacant construction land (as provided for in the La w on Real Estate Tax).  Taxes collected by the 
municipalities had accounted for approximately 10.5 per cent of total Government revenue in 2010.  
13. In response to specific questions, the representativ e of Montenegro added that although duties 
and taxes collected at the border had represented more than 32.23 per cent of total Government 
revenue in 2010, these revenues were largely due to the application of internal taxes (VAT and excise 
duties).  Customs duties and charges had accounted for less than 5 per cent of total Government 
revenue in 2010.  She confirmed that Montenegro's municipalities were not authorized to levy taxes or 
duties on imports.   
- Foreign Exchange and Payments  
14. The representative of Montenegro said that the Euro was the monetary unit, legal tender and 
reserve currency of Montenegro pursuant to the Law of the Central Bank of Montenegro.  The Law on 
the Central Bank (RM OG Nos. 53/00, 47/01 and 04/05; OG MNE Nos. 40/10 and 46/10), the Law on 
Banks (OG MNE Nos. 17/08 and 04/10), the Foreig n Investment Law (OG MNE No. 18/11), and the 
Law on Current and Capital Transactions (RM OG No. 45/05) enabled payments to be effected freely 
without restriction.  Her Government did not impos e any requirements or controls on the acquisition 
or disposition of foreign exchange by private indivi duals or firms, did not provide foreign exchange 
for any designated purpose, nor did it apply any limitations or restrictions on foreign accounts of 
businesses or private citizens.  Montenegro did not maintain any foreign exchange restrictions not WT/ACC/CGR/38 
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 explicitly approved by the IMF.  She added that the Law on Current and Capital Transactions, which 
entered into force in 2005, did not authorize any r estrictions with respect to foreign exchange and 
payments for residents and non-residents alike.  Th is Law also covered foreign direct investment, 
trading in securities, foreign borrowing and lending,  and deposits in fore ign banks prohibited any 
discriminatory State-ordered restrictions on the fr ee movement of capital.  The Law on Current and 
Capital Transactions was amended in 2008 by dele ting Article 12 which contained the reciprocity 
condition, as it was considered a violation of the MFN principle and possible discrimination between 
WTO Members.   
15. Asked to describe the circumstances under wh ich foreign accounts could be frozen and the 
right to appeal such decisions, she said that foreign or domestic accounts generally could be frozen 
only by court order, normally in the context of an ongoing dispute or in the execution of a judgement.  In addition, Montenegro's tax authorities could freeze accounts if necessary to ensure payment of 
uncollected taxes, and an investigating magist rate could freeze an account in connection with a 
criminal investigation.  Such actions were subject to administrative appeal and to judicial review.   
16. Concerning Montenegro's relations with the IMF,  the representative of Montenegro recalled 
that the Socialist Federal Republic  of Yugoslavia (SFRY) had par ticipated in the Bretton Woods 
Conference (in 1944) and had been one of th e founders of the IMF and the World Bank.  
Between 1980 and 1991, the SFRY had been approved for seven stand-by arrangements to the value 
of SDR 3.5 billion, of which SDR 2.7 billion had been used.  On 20 December 2000, the 
IMF Committee of Executive Directors had decided that the Federal Republic of Yugoslavia (FRY) 
met all requirements for becoming a member of the institution, with retroactive effect from 
14 December 1992, when the Board of Executive Di rectors of the IMF had concluded that the SFRY 
had ceased to exist.  The FRY's share of the asset s and liabilities of the former SFRY had been set at 
38.06 per cent.  In 2005, the IMF had granted Serbia and Montenegro a credit of US$200 million and this Agreement had enabled a write-off of th e remaining debt to the Paris Club totalling 
US$700 million.  After the proclamation of Montenegro 's independence, the ratio of all non-allocated 
rights and obligations had been set at 94.12 per cent for Serbia and 5.88 per cent for Montenegro in 
accordance with the Agreement on Regulating Membersh ips in International Financial Organizations 
and Division of Rights and Obligations of the Two Republics signed between Montenegro and Serbia on 10 July 2006. 
17. Stressing that an efficient and transparent m onetary and foreign exchange system could 
facilitate trade and contribute to economic develo pment, a Member referred to ongoing discussions 
between the Government of Montenegro and the International Monetary Fund regarding certain 
aspects of the financial and foreign exchange system, and urged Montenegro to be ready to come into 
compliance with WTO rules, including Article XV  of the GATT 1994 and Article XI of the GATS, 
and to factor this into the discussions with the IMF.   
18. In reply, the representative of Montenegro sai d that Montenegro was negotiating its status 
with the IMF, and WTO requirements were not cen tral in these talks as Montenegro was using the 
Euro as its sole currency.  She reiterated that the Law on Current and Capital Transactions did not 
authorize any restrictions with respect to foreign exchange and payments.  She subsequently informed 
the Working Party that Montenegro had become a member of the IMF on 18 January 2007. 
- Investment Regime 
19. The representative of Montenegro said that th e Economic Reform Agenda, a comprehensive 
four-year plan for the period 2003-2007, aimed at fostering a positive business climate in Montenegro 
based on transparent, non-discriminatory and non-di scretionary regulations, effective protection of 
investors' rights, and rapid and fair settlement of disputes.  The Agenda sought to develop an  WT/ACC/CGR/38 
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 environment conducive to domestic and foreign investment by upgrading the physical infrastructure 
in Montenegro as well as in the context of ove rall legal and institutional reforms.  Among the 
objectives were to achieve a trade regime in confor mity with WTO rules, a modern commercial legal 
regime, the protection of propert y rights, streamlined administrative procedures, financial sector 
reform, and a stable macroeconomic environment.  Her Government was particularly mindful of the 
positive effect of investment in creating employme nt.  Since 2007, the Government of Montenegro 
had established the Economic and Fi scal Programme (EFP) - a step forward in economic and political 
communication of the Government of Montenegro w ith the European Union.  This programme was 
prepared for a period of three years.  While preparing the latest EFP (2010-2013), Montenegro's 
objective was, among other things, to respond to comments and remarks of the European Union on 
the previous EFP (2009-2012), as well as to anticipat e the requests that Montenegro, as a candidate 
country, would have in preparation of th e Pre-accession Economic Programme (PEP).  
The preparation of the latest EFP was for the first time part of the regular preparation of national 
fiscal documents, mid-term fiscal framework and th e annual budget.  For the first time, the EFP also 
included the Government's output gap assessment as well as the assessment of structural 
surplus/deficit.  In preparation of the latest EFP,  the quality of the document had been enhanced by 
including a detailed assessment of budgetary effect s of measures and policies related to structural 
reforms.   
20. In 2004, the Montenegrin Investments Promo tion Agency (MIPA) was established by 
Government Decision.  The purpose of the Agency  was to promote invest ment projects, develop 
Montenegro's investment promotion strategy, coordi nate all activities to attract foreign investment, 
and develop partnerships between the public a nd private sector.  The Agency could provide 
information to potential investors, but had no means to provide subsidies or other types of incentives. 
According to Article 16 of the new Foreign Investment Law (OG MNE No. 18/11), the Montenegrin Investment Promotion Agency (MIPA) would perform  the following tasks:  (i) carry out professional 
tasks to promote investment opportunities in Monten egro, in accordance with the Strategy and the 
Agency's annual work programme that related to :  preparation, development and presentation of 
information on business opportunities in investing in  Montenegro; providing technical assistance to 
foreign investors for investments in certain areas and sectors of the economy; arranging for direct contacts between foreign and domestic enterprises; boosting cooperation with re levant international 
institutions to promote foreign investment; (ii) monitor the implementation of foreign investment, 
cooperate with State agencies, local self-government  bodies and State institutions in Montenegro with 
the aim to promote and support the realization of investments; (iii) provide information on foreign 
investments to the Government in order to improve the investment environment; (iv) keep records of 
foreign investors and foreign investment; (v) perform other activities in the field of foreign investments, in accordance with the Law.  Fundi ng for the Agency would be provided from the 
budget of Montenegro and from donations.  However, the Agency had, as in the past, no means to 
provide subsidies or other types of incentives. 
21. In the past, foreign investment was regulated pursuant to the Foreign Investment Law of the 
Republic of Montenegro (RM OG Nos. 52/00 a nd 36/07).Montenegro's investment legislation 
generally placed foreigners on equal footing with dom estic investors and did not stipulate reciprocity 
requirements, except for the purchase of real estate pursuant to the Law on Basic Property Relations 
(FRY OG No. 29/96).  The Foreign Investment Law did not stipulate restrictions on foreign capital 
except for production or trade in arms and ammunition,  which was subject to approval by the Ministry 
of Defence and could only be effected in a joint ve nture with a local partner, and joint ventures in 
national parks or in "border districts", where the sh are of foreign ownership in the joint venture could 
not exceed 49 per cent.  Border districts were not determined precisely in the Law, but understood to 
be identical to the "frontier strip" defined in th e Law on Crossing of the State Border and Movement 
in the Frontier Strip (RM OG No. 68/02) as territory within 100 metres of the State border of 
Montenegro on land, and within two miles of the boundary line at sea.  The Ministry of Defence was WT/ACC/CGR/38 
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 required to respond to a request to establish or invest  in an enterprise producing or trading in arms and 
ammunition within 30 days of receipt, otherwise th e application would be considered approved.  
She confirmed that Montenegro had no minimum cap ital requirements for foreign investors, and did 
not apply any differential pricing for utilities or transportation.  
22. Some Members noted that Montenegro was considering amending the Law on Foreign 
Investment inter alia  to strengthen the legal protection of  investments and enquired about the 
anticipated timeframe for the completion of this wo rk.  The representative of Montenegro replied that 
Montenegro's Parliament had passed the new Foreign Investment Law on 17 March 2011 (OG MNE 
No. 18/11).   The new Law had removed the restriction on foreign investment in restricted areas 
(national parks and "border districts").  The only r estriction still in place concerned foreign investment 
in production or trade in arms and am munition (Article 7 of the Law).   
23. The representative of Montenegro said that a ne w Foreign Investment Law came into force on 
1 April 2011 (OG MNE No. 18/11).  According to the new Law, a foreign investor was defined as a legal entity having at least 10 per cent share of foreig n capital in the total entity's capital, which, in her 
view, was in compliance with international standard s.  In order to eliminate business barriers the Law 
stipulated the following:  (i) the drafting of St rategy for promotion of foreign investments; 
(ii) the creation of a unique foreign investors' da tabase within the Montenegrin Investment Promotion 
Agency; and, (iii) the simplification of business pr ocedures.  With the above-mentioned changes, the 
system of foreign investors' protection and inv estment statistics would be improved to create an 
environment conducive for investments in Montenegro. 
24. In the past, all foreign investment in Montenegro  was  to be insured and registered with the 
Agency for Foreign Investments and Reconstructi on of Economy (for statistical purposes).  Changes 
in the investment were to be notified to the Agen cy.  Foreign-owned enterprises registered with the 
Commercial Court in the same manner as domestic en terprises.  The Court in formed the Agency for 
Foreign Investments about the registration of foreig n investment.  Registration with the Agency was 
automatic and free of charge.  According to the new Foreign Investment Law, the MIPA was in 
charge of foreign investment record.  Data on foreign investments would be submitted by:  
(i) the Central Registry of the Commercial Court (the  data on enterprise and part of enterprises which 
had the status of a foreign investor in accordan ce with Article 2 of the Law); (ii) the Central 
Depository Agency (the data on the share capital of foreign investors); and (iii) the State authority 
competent for registration of immovable property in the cadastre (the data on ownership and other real 
rights on immovable property of foreig n legal entities and natural persons). 
25. Asked to describe the requirements for registering a daughter company of a foreign 
enterprise, the representative of Montenegro said that a foreign enterprise establishing a foreign 
company branch in Montenegro should submit documentation to the Central Registry of the 
Commercial Court within 30 days of the establishm ent, including the name and legal form of the 
parent company and the branch; the activities and addr ess of the branch; an auth enticated copy of the 
charter of the foreign enterprise and a certified transl ation of this document; a copy of the registration 
certificate of the foreign enterprise and an authenti cated document confirming the legal registration of 
the enterprise in its home State; identification of  the person(s) authorized to represent the company 
vis-à-vis  third parties and in legal proceedings as a company Body or permanent representative; 
identification of a resident/residents authorized to  accept the service of legal proceedings on behalf of 
the company or any notice required to be served on th e company; and, the most recent balance sheet, 
profit and loss statement, or similar financial doc uments required by law in the home country.   
26. Concerning the expropriation of property, she noted that Article 58 of the Constitution of 
Montenegro (RM OG No. 01/07) provided that prope rty rights could only be revoked in the public 
interest as prescribed by law, and against right ful compensation.  According to the Law on  WT/ACC/CGR/38 
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 Expropriation (RM OG Nos. 55/00, 28/06 and 21/08), th e State authority in charge of property affairs 
effected the expropriation of real estate in the public interest, as defined by law, or determined by the 
Government.  The Government was obliged to decide  upon proposals to expropriate real estate by the 
State, a municipality, a State fund or a public company within 60 days of receipt.  The decision could 
be appealed to the Supreme Court of Montenegro.  Expropriation decisions of the State authority in 
charge of property affairs could be appealed to  the second instance administrative authority, or 
referred to the competent court under the administ rative disputes procedure.  Article 17 of the 
Constitution provided a general right of appeal of all decisions affecting the rights or legal interests of 
any person.  An interested party could also request  the court to consider compensation pursuant to the 
Law on Contracts and Torts (RM OG No. 44/99).  Re garding the protection of foreign investors, 
Article 11 of the Foreign Investment Law provided that the assets of foreign investors would not be 
subject to expropriation, except when public interest was determined by law or on the basis of law, in 
which cases a compensation would be payable in accord ance with the Law.  According to Article 12, 
foreign investors who suffered damage as a conse quence of war or emergency would be entitled to 
compensation for such a damage which would not am ount to less than the fee attributable to the 
domestic legal entity and natural person in accordan ce with the Law.  Foreign investors would be 
entitled to compensation for damage caused by unlawf ul or irregular work of a public official or 
public authority, in accordance with the Law. 
- State Ownership and Privatization, State-Trading Entities  
27. The representative of Montenegro said th at approximately 380 State-owned or 
"socially owned" companies had been subject to tr ansformation and incorporation in the early 1990s 
pursuant to the Law on Ownership and Management Transformation (RM OG Nos. 02/92, 17/92, 59/92, 04/93, 27/94, 30/ 94 and 23/96).  Employees in these enterprises had been granted 10 per cent 
of the shares free of charge, and been allowed to  purchase additional shares (up to 30 per cent of the 
shares outstanding), offered at a discount and to be paid in instalments.  The remaining stakes had 
been transferred to three State-owned funds - the Development Fund, the Pension Fund, and the 
Employment Fund.  Some 117 of these enterprises had subsequently been sold through various 
methods, including direct sale or auctions.  In ei ght sectors - mobile telecommunications, insurance, 
tourism, pharmaceuticals, food production, footwear and garments, regional wa ter supply, and metals 
- privatization had been envisaged to be effect ed through the establishment of joint ventures.  
She noted that in accordance with the Law on Ownership and Management Transformation, all 
"socially owned" companies had been transforme d into joint-stock or limited liability companies 
(with private, mixed, State or cooperative ownership). 
28. More than 200 enterprises had been privatized  through Mass Voucher Privatization (MVP).  
Montenegro's adult population had received voucher points and given the choice to invest their points 
in individual enterprises or in six privatizati on funds (HLT Fund, Eurofond, Trend, Atlas Mont, 
Moneta and MIG).   
29. At present, privatization was governed by  the Law on Ownership and Management 
Transformation (RM OG Nos. 02/92, 17/92, 59/92, 04/93, 27/94, 30/94 and 23/96); the Law on Privatization of the Economy (RM OG Nos. 23/96, 06/99, 59/00 and 42/04); the Decision on Establishment and Structure of the Privatization Council (RM OG No. 23/07); the Decree on Sale of 
Shares and Company Assets by Public Auction (RM OG No. 20/04); the Decree on Sale of Shares 
and Company Assets by Public Tender (RM OG Nos. 08/99, 31/00, 14/03, 59/03 and 65/03); the 
Decree on Publishing, Acquiring and Use of Priv atization Vouchers (RM OG Nos. 17/01, 37/01 
and 11/02); the Decree on Dematerialization of  Securities and Privatization Vouchers 
(RM OG Nos. 08/99 and 26/00); the Decree on the Mode of Implementing Employees' Rights to Free Shares (RM OG No. 24/99); the Law on Settling Obligati ons and Claims Related to Foreign Debt and 
Foreign Currency Saving Deposits of the Citizens (RM OG Nos. 55/03 and 11/04); the Law on WT/ACC/CGR/38 
WT/MIN(11)/7 Page 8 
 
 
 Restitution of Property Rights and Compensation (RM OG No. 21/04); and, the Law on Investment 
Funds (RM OG No. 49/04).  Privatization was carried out according to Privatization Annual Plans adopted by her Government, on proposal of the Pr ivatization Council.  The Privatization Council had 
been established in 1999 pursuant to the Law on Am endments of the Law on Privatization of the 
Economy (RM OG Nos. 23/96, 06/99, 59/00 and 42/ 04) and was responsible for managing and 
controlling the privatization process.  It had execu tive competencies and was responsible before the 
Government.  The privatization plans identified th e enterprises to be privatized, the methods of 
privatization, the number of shares to be sold, etc.   
30. The representative of Montenegro provided a Priv atization Report in May 2006, circulated in 
document WT/ACC/CGR/13.  The report described the privatization activities undertaken in 2005 and 
outlined the plan for 2006.  According to the repor t, among the 386 enterprises having had an element 
of State ownership in the past, 272 had been fully privatized as per December 2005.  Responding to requests for updates on progress in privatization in  Montenegro, she provided information on 
enterprises to be privatized in 2008 pursuant to  the Decision on the Privatization Plan for 2008 
(document WT/ACC/CGR/28/Add.1).  Asked to provid e a status report of the privatization process 
per sector, she noted that data per sector was not available, but based on the estimated value of the enterprise capital, the percentage of enterprise capital remaining under State control was less than 
15 per cent.  She provided a list of the largest comp anies with majority State ownership (more than 
50 per cent of the shares) that remained to be pr ivatized in Table 1.  She confirmed that her 
Government did not retain control over the ma nagement in enterprises where it held a minority 
interest.   
Table 1:  Largest Companies with the Majority of  State-Owned Capital Still to be Privatized   
Company Sector Value of the State Share 
of the Company (in €) State's Share (in %) 
JSC "Adriatic Shipyard" 
Bijela Shipyard 19,465,191 61.57 
JSC HG "Budvanska 
rivijera" Budva Tourism 40,889,153 58.73 
JSC HTP "Ulcinjska 
rivijera" Ulcinj Tourism 81,530,000 63.52 
JSC "Montecargo" 
Podgorica Railway 14,921,862 87.63 
"Maintenance of 
railway rolling stock" - 
Podgorica Railway 18,407,247 87.63 
JSC "Railway 
infrastructure of 
Montenegro" Podgorica (part – Maintenance) Railway 358,586,093 76.51 
JSC "Port of Bar" Bar Adriatic Port 37,167,472 54.05 
31. In response to specific questions, she said that no  restrictions were placed on the participation 
of foreign investors in the privatization process, other than those prescribed by the Law on Foreign 
Investment.  The Decree on Sale of Shares and Co mpany Assets by Public Auction and the Decree on 
Sale of Shares and Company Assets by Public Te nder both stipulated that any natural and legal 
person, whether domestic or foreign, had the right to participate in privatizati on tenders and auctions.   
32. She noted that no companies would be reserved for continued State ownership.  Only natural 
resources and public goods such as roads, parks a nd town squares were not to be privatized.  
Her Government was determined to complete the pr ivatization process as soon as possible.  While a  WT/ACC/CGR/38 
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 specific estimate of how long this would take w as difficult to provide, she said the privatization 
process would be completed within the next five years.  She further stated that, upon the proposal from the Privatization and Capital Investment Counc il, the Government had adopted a Privatization 
Plan for 2011.  The companies in cluded in this Plan were in the process of preparation for 
privatization (via sale of shares or assets by public te nder, sale of shares or assets by public auction, 
sale of shares on the stock exchange, valorisati on of the tourism locations/companies through  
public-private partnership, sale or valorisation of former military assets, privatization of public utility 
companies, etc.) and the Privatization and Capita l Investment Council had already adopted decisions 
to start the privatization of these companies.   
33. The representative of Montenegro confirmed that  to ensure full transparency and to keep 
WTO Members informed of its progress in the ongoing reform of its econom ic and trade regime, 
Montenegro would provide annual reports to WTO Members on developments in its programme of 
privatization, including identification of recently pr ivatized enterprises and enterprises expected to be 
privatized, as well as relevant legal measures re lating to Montenegro's privatization programme.  
The Working Party took note of this commitment. 
34. The representative of Montenegro responded to requests for information on State trading in 
document WT/ACC/CGR/3/Add.1 (Annex 6), stating that , in her view, Montenegro had no enterprise 
covered by the provisions of Article XVII of the GATT 1994.  Subsequently asked to list and provide 
information on any enterprise with exclusive or sp ecial rights or privileges and any State-owned or 
State-controlled enterprise regardless of whet her these enterprises had special privileges or 
monopolistic status, including information on the sec tors in which these enterprises operated and the 
extent of the State's involvement in the commercial decisions of these enterprises, she reiterated that, 
in her view, Montenegro had no enterprises - private or State-owned - with exclusive or special rights 
or privileges as referred to in Article XVII of th e GATT 1994 and the Understanding on that Article.  
Montenegro had no State-trading enterprises in any sector.  Amongst the former State-owned 
enterprises with a continued element of State owne rship, none had "exclusive or special rights or 
privileges, including statutory or constitutional po wers, in the exercise of which they influence 
through their purchases or sales the level or directi on of imports or exports",  and no privately-owned 
enterprises had such special rights or privileges.  She further expressed the view that Montenegro's 
State-owned enterprises acted in accordance with  commercial considerations and in a manner 
consistent with the non-discrimination principle, as provided for in Article XVII of the GATT 1994.  
Commercial decisions of these enterprises were take n through participation of the State in the 
management board of the enterprises.  She noted that there were no specific laws or regulations 
governing the sales/purchases of these enterprises.  State-owned enterprises operated under the same 
rules as privately-owned enterprises.  As of mid-2008, more than 85 per cent of the capital owned by the State had been privatized (see paragraph 30).  Detailed information on such enterprises is provided 
in Tables 2 and 3 below.  
Table 2:  Output Structure of Industrial Enterprises by Type of Ownership and Activity 
Activity Sectors Total 
number of 
employees Ownership type (number) Ownership type (%) 
Total Private State and 
State-
corporate Communal 
and 
communal-
corporate Private State and 
State-
corporate Communal 
and 
communal-
corporate 
Agriculture and forestry 2,347 155 153 2 0 98.71 1.29 0 
Fishing 102 30 30 0 0 100 0 0 
Mining and 
quarrying 2,332 53 53 0 0 100 0 0 
Manufacturing 16,563 1,726 1,715 11 0 99.36 0.64 0 WT/ACC/CGR/38 
WT/MIN(11)/7 Page 10 
 
 
 Activity Sectors Total 
number of 
employees Ownership type (number) Ownership type (%) 
Total Private State and 
State-
corporate Communal 
and 
communal-
corporate Private State and 
State-
corporate Communal 
and 
communal-
corporate 
Electricity 
supply**, water supply, gas, local  
utility 
companies*** 4,369 30 22 8 0 73.33 26.67 0 
Construction 7,903 1,537 1,535 2 0 99.87 0.13 0 
Wholesale and 
retail trade, repair 36,918 8,340 8,335 5 0 99.94 0.06 0 
Hotels and 
restaurants 13,131 1,906 1,903 3 0 99.84 0.16 0 
Transport, storage 
and 
communications 12,541 1,691 1,683 8 0 99.53 0.47 0 
Financial 
activities 3,959 136 132 4 0 97.06 2.94 0 
Real estate 
activities, renting, 
other business 
activities 9,264 2,763 2,759 4 0 99.86 0.14 0 
Public 
administration and 
social insurance* 18,868 45 1 44 0 2.22 97.78 0 
Education* 11,854 37 36 1 0 97.30 2.70 0 
Health and social 
work* 11,238 80 79 1 0 98.75 1.25 0 
Other community, 
social and 
personal service 
activities 10,353 632 619 13 0 97.94 2.06 0 
TOTAL 161,742 19,161 19,055 106 0 99.45 0.55 0 
Source: Statistical Office of Montenegro - MONSTAT.  
* Employment include whole public sector / public institutions financed from state budget 
** Electricity company of Montenegro - in the preparation for privatization (restructuring program) *** 28 local community companies for water supply and sanitation 
Table 3:   Distribution of Exports/Imports of G oods by Type of Ownership in 2010 
 Total Private State and State- 
corporate Communal and 
communal-
corporate 
Export 
Number of enterprises 1,419 1,288 63 68 
Volume, € million 330 - - - 
Share of the total export (%) 100 - - - 
Import 
Number of enterprises 5,098 4,499 162 437 
Volume, € million 1,657 - - - 
Share of the total import (%) 100 - - - 
Source:  Statistical Office of Montenegro - MONSTAT. 
35. One Member noted that, given the existence of State-owned enterprises in Montenegro, it was 
not accurate for Montenegro to assert that it ha d no enterprise covered by the provisions of 
Article XVII of the GATT 1994 because those provisions  expressly applied to "State enterprises", not 
only to enterprises with special or exclusive pr ivileges.  The representative of Montenegro 
acknowledged that, although in her view Montenegro  had no enterprises with special or exclusive  WT/ACC/CGR/38 
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 privileges, there were nevertheless "State enterpri ses" in Montenegro that were subject to the 
obligations of GATT Article XVII.  In this respect,  she identified the seven largest State-owned or  
-controlled enterprises as those already set-out in Tabl e 1.  In response to a question as to whether any 
of those enterprises engaged in the transport and/or  distribution of imported products, and if so how 
Montenegro ensured those enterprises acted in ac cordance with commercial considerations, she said 
that none of those enterprises were engaged in the transport and/or distribution of imported products, 
except "Elektroprivreda CG" AD (Electric Power Company), which occasionally imported electric power when the demand exceeded the supply and "Ze ljeznice Crne Gore" (Railway Company) which 
transported goods by rail as one of its basic activities. 
36. The representative of Montenegro confirmed that , from the date of accession, enterprises that 
were State-owned or controlled, and enterprises wi th special or exclusive privileges, would make 
purchases of goods and services, which were not intended for governmental use, and sales in international trade in accordan ce with commercial considerations, including price, quality, 
availability, marketability, and transportation, and would afford enterprises of other WTO Members 
adequate opportunity in conformity with customar y practice, to compete for such purchases or sales.  
She further confirmed that enterprises that were State-owned or -controlled, and enterprises with 
special or exclusive privileges  would also act in conformity with other WTO provisions.  She also 
confirmed that Montenegro would notify any enterp rises falling within the scope of the Understanding 
on Article XVII of the GATT 1994 upon accession.  The Working Party took note of these 
commitments. 
- Pricing Policies  
37. The representative of Montenegro said that the Law on Social Price Control 
(RM OG No. 45/90) had provided the authority for her Government to regulate prices in broad areas 
of the economy, including in the construction industry,  road transport, insurance, higher education and 
research, publishing (except local newspapers), broa dcasting, health care and social services, and 
banking.  The Law had also provi ded for Government regulation of  prices in order to stimulate 
agricultural production.  In addition, the Law had authorized intervention in response to significant 
price disturbance, or in case it was apparent that  economic policy objectives could not be met by any 
other means but price control.  However, despite the broad authority provided in the Law on Social Price Control, price controls had been applied fo r a limited number of goods and services such as 
medicines for human consumption, oil and oil deri vatives, postal services, and certain utility services 
(heating, water supply, garbage collection, public tr ansportation, etc.) subject to control by the local 
authorities.  The Law had been abolished in Febr uary 2006 pursuant to the Law on Abolishment of 
the Law on Social Price Control (RM OG No. 27/06).   
38. At present, prices were determined freely by the market in Monteneg ro except for certain 
medicines, oil and oil derivatives, and elect ricity.  Article 6 of the Law on Medicines 
(RM OG No. 80/04; OG MNE Nos. 18/08 and 34/10) authorized her Government to set maximum 
prices for medicines.  She added that only medica tions reimbursable under the national health scheme 
- whether imported or domestic - were subject to price control.  She noted that under the national 
health plan, imported and domestic medicines were s ubject to the same conditions of reimbursement.  
Pursuant to the Decree on Method of Establishm ent of Maximum Retail Prices of Oil Derivatives 
(RM OG Nos. 52/02, 55/02, 23/03, 32/02 and 35/05), oil companies were obliged to observe 
maximum retail prices for oil derivatives.  All such  products were imported.  The maximum prices 
were cost-based and adjusted to account for move ments in world market prices; exchange rates; 
import duties, fees and taxes; distribution, handling and storage costs; operating margins; etc.  As regards coal, the price controls applied only to domestically-produced coal delivered to the electric 
power plant Pljevlja.  The measure was applied on the basis of the Law on Energy 
(RM OG No. 39/03), which envisaged complete de regulation of coal prices after a period of WT/ACC/CGR/38 
WT/MIN(11)/7 Page 12 
 
 
 maximum five years following the passage of the Law.   Coal destined for other users or purposes was 
not subject to price regulation.  The power plant P ljevlja was authorized to purchase imported coal at 
market prices, but in practice the plant based its n eeds on local coal.  Delivery of coal from the coal 
mine Pljevlja for electricity generation in Pljev lja was performed under the contract between coal 
producers and power producers.  Such contracts we re determined on the basis of quantity, price, 
quality of coal and others.  As for the price of el ectricity, according to Article 51, paragraph 1 of the 
Energy Law (OG MNE No. 28/10), energy prices were established freely on the organized market or bilaterally in a contract between sellers and bu yers, with the exception of  cases when they were a 
component part of regulated supply tariffs.  A de tailed methodology had been prescribed in the Rules 
of Tariff on Electricity (RM OG Nos. 47/05, 50/05 and 42/07;  OG MNE Nos. 6/07 and 54/09).  
The Law on Telecommunications (RM OG No. 59/00) had established a regulatory Agency for Telecommunications which was responsible for price controls, if any, on telecommunication services.  
The abolition of the Law on Social Price Control ha d eliminated the authority to establish prices for 
agricultural products.   
39. The representative of Montenegro said that importers and wholesalers of cigarettes and other 
tobacco products determined the retail price and notified the administrative authority.   
40. Noting that the Law on Social Price Control had been abolished but that the Government of 
Montenegro had retained the authority to regulat e the prices for some items, some Members asked 
how Montenegro would ensure that its price contro ls would not be applied in a prejudicial manner, 
consistent with Article III:9 of the GATT 1994.   
41. The representative of Montenegro replied th at the price regulations applied by her 
Government did not discriminate between imported and domestically-produced goods.  Both the coal 
mine and the power plant at Pljevlja were in the privatization process and might possibly be sold to 
the same owner.  The tender was cancelled and th e JSC "Elektroprivreda Crne Gore" was the owner 
of the power plant while the State was the owner of the minority share capital in the coal mine.  
No further price controls would be maintained on coal once the privatization process had been 
completed for the two enterprises.   
42. Concerning medicines, she noted that a Decree on the Criteria for Establishing Maximum 
Prices of Medicines (RM OG No. 50/07), which de tailed the price regulations on medicines and 
included a list of price-controlled medications, had been adopted in July 2007.  The Decree was 
amended in 2010.  Pursuant to this amended Decr ee, as of 2012, maximum prices of medicines would 
be determined by the Agency for Medicines and Medical Devices on the basis of the price proposed 
by the producer, or its agent or representative in Montenegro in his/her application for a market 
authorization, a set of criteria including the av erage wholesale price of medicines in reference 
countries (Slovenia, Croatia, and Serbia) and its ratio to the wholesale price of medicines in 
Montenegro, economic indicators, and wholesale cost s.  A market inspectorate controlled the proper 
implementation of price control measures.  She added that prices controls of medicines were enforced 
at the wholesale and retail levels and that imported and domestic medicines were subject to the same 
conditions.  Over-the-counter medicines were not subject  to price controls.  She noted that the list of 
price-controlled medicines was under development.  Once finalized, the list would be published in the 
Official Gazette.  She confirmed that all subsequent changes would be published.   
43. The representative of Montenegro confirmed th at from the date of accession, Montenegro 
would apply price control measures in a WTO-consis tent fashion, including by taking account of the 
interests of exporting WTO Members as provided fo r in Article III:9 of the GATT 1994, and with 
respect to Articles V and VIII of the GATT 1994 and Article VIII of the General Agreement on Trade 
in Services (GATS).  She also confirmed that following accession, Montenegro would regularly  WT/ACC/CGR/38 
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 publish notices of the goods and services subject to Stat e price controls.  The Working Party took note 
of these commitments.   
- Competition Policy 
44. The representative of Montenegro said that the FRY Antimonopoly Law 
(FRY OG No. 29/96) - technically in force in Mont enegro, but never applied in practice - had been 
superseded by the Competition Law (RM OG Nos. 69/05 and 37/07) enacted in November 2005.  This Law had been modelled on Articles 81, 82 and 86 of the Treaty on European Union; EC Regulations Nos. 2790/1999, 139/2004 and 17/62; and, European Commission Decrees (OJ C 372/1997 and OJ C 368/2001).  
45. The Competition Law foresaw the establishment of an independent agency, the Directorate 
for the Protection of Competition, responsible for the development of regulations furthering 
competition as well as the enforcement of Montenegro's competition legislation.  She estimated the annual budgetary expense for the enforcement of th e Law to be approximately €100,000.  The Agency 
would be entrusted with merger control and inves tigations of acts infringing on competition, defined 
in the Law as abuse of dominant position and Agre ements preventing, restricting or impairing 
competition in circumstances other than those accep ted under the Law (e.g. Agreements contributing 
to the improvement of production or distribution, or to the stimulation of technical or economic 
development).  The Law stipulated strict penalties for violations against the rules on competition.  
The decisions of the Agency could be challenged in the Administrative Court of the Republic of 
Montenegro.   
46. Asked to provide an updated list of compan ies having production, trade or internal 
distribution monopolies in Montenegro, she said that Montenegro had no such enterprises.  She added 
that the Directorate for the Protection of Compe tition was responsible for determining abuse of 
competition and the existence of monopolies.   
47. The representative of Montenegro noted that the 2005 Competition Law required further 
improvement.  A new Law on Protection of Competiti on would be drafted, which would provide for 
the establishment of an independent authority, the Agency for the Protection of Competition, and would be fully compliant with EU legislation in  the field of competition (Council Regulations 1/2003 
and 139/2004; Commission Regulation 773/2 004; Commission Notices OJ C 298/2006, 
OJ C 325/2005 and OJ C 368/2001; and Guidelines OJ C 210/2006).  This Law would provide for a more precise definition of the Agency's investig ative powers, sanctions, periodic penalties and the 
possibility of release or reduction of penalty fo r those willing to cooperate with the Agency - 
Leniency Program.  Also, the new Law would intr oduce a new definition of dominant position, which 
would be based on the Significant Impediment of Ef fective Competition (SIEC) test.  She expected 
that the new Law on Protection of Competition would be adopted by the end of 2011.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government 48. The representative of Montenegro said that M ontenegro's parliamentary democracy was based 
on the principle of separation of powers between th e legislative, executive and judicial branches of 
Government.  The President of the Republic, repr esenting the State, was elected directly for a  
five-year term.  The President nominated the Prime Minister, proposed the president and judges of the 
Constitutional Court, and signed promul gations declaring laws.  The role of the Prime Minister was to 
constitute the Government.   WT/ACC/CGR/38 
WT/MIN(11)/7 Page 14 
 
 
 49. Parliament was the supreme legislative Body, composed of 81 members chosen by direct 
ballot every four years.  Parliament enacted th e Constitution, the laws and legal acts; provided 
authentic interpretation of the laws; adopted the budget and annual balance shee t; ratified international 
Agreements; elected and dismissed the President and Vice President of the Parliament from within its 
own members; and confirmed the Prime Minister, ministers, justices and presidents of the 
Constitutional Court and the Supreme Court, and the St ate Prosecutor.  Montenegro's Parliament also 
decided on membership in international organi zations based on proposals of the President.  
Laws passed by Parliament were declared by promulgation signed by the President.  Should the 
President refuse to sign a promulgation declaring a law, then Parliament would be obliged to  
re-examine the law.   
50. The Rules of Procedure of the Parliament (Articles 157 to 159) implemented the 
constitutional provision establishing that Parliament could provide authentic interpretation of the 
laws.  A request for an authentic interpretation of a law was submitted to the President of the 
Parliament, who conveyed it to the members of Pa rliament and the Constitutional and Legislative 
Committee.  The Constitutional and Legislative Co mmittee drafted an authentic interpretation and 
presented it to Parliament.  If the Constitutional a nd Legislative Committee did not find the request 
for an authentic interpretation justified, a report would be submitted to Par liament, which decided on 
the matter.  An authentic interpretation of a law was binding.  WTO-related legislation enacted by 
Parliament was, in principle, open to authentic in terpretation.  However, international Agreements 
ratified by Montenegro became part of the internal  legal system and could not be changed by law.  
Thus, any authentic interpretation of WTO-related laws enacted by Parliament would have to take 
note of the respective WTO Agreements, and obser ve the requirements of such Agreements.   
51. Concerning the procedure for ratification of  Montenegro's Protocol of Accession, 
the representative of Montenegro said that the Mi nistry of Economy would prepare a draft Law on 
Ratification of the Marrakesh Agreement Es tablishing the World Trade Organization 
(including Annexes 1, 2 and 3) in cooperation w ith the Ministry of Foreign Affairs and European 
Integration.  The draft Law would be submitted to her Government for approval, and then forwarded 
to Parliament for passage.  Upon adoption of the Law on Ratification, the President of Montenegro would sign a Proclamation for the Law, which would be published in the Official Gazette.  Following 
publication, the Ministry of Foreign Affairs and European Integration would prepare and submit an 
instrument on accession in compliance with Article XII:1 of the Agreement Establishing the World 
Trade Organization.  The procedure for ratification of international Agreements normally took about 
two months.   
52. Parliament confirmed the Government by majority  vote at the proposal of the Prime Minister 
and based on the programme of the prospective Go vernment.  The Government was accountable to 
Parliament in implementing laws and other regulations passed by Parliament.  The Government 
proposed laws, the State budget and other regulations for adoption by Parliament, and adopted decrees 
and other regulations necessary for execution of the laws.  Ministries worked independently in their 
areas of jurisdiction within the framework provi ded by the Constitution and the laws, and were 
accountable to the Government.  The present Gove rnment consisted of a Prime Minister, two  
Vice-Prime Ministers, and 16 Ministers (Transport and Maritime Affairs; Information Society and Telecommunications; Sustainable Development and T ourism; Finance; Foreign Affairs and European 
Integration; Culture; Education and Sport; Defence;  Agriculture and Rural Development; Justice; 
Science; Interior; Economy; Human and Minority Righ ts; Health; and, Labour and Social Welfare).   
53. The Ministry of Economy was the principal G overnment entity responsible for formulating 
and implementing policies relating to foreign trade.  The Ministry was responsible for negotiating and 
coordinating the implementation of international treaties and the coordination of relations with 
international economic institutions.  In carrying out  its tasks, the Ministry of Economy cooperated  WT/ACC/CGR/38 
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 with the Ministries of Finance; Agriculture and Rural Development; and other ministries.  
Foreign trade policy was formulated in close coope ration with the Ministry of Finance, which was 
also responsible for cooperation with the internati onal financial institutions.  The Ministry of Finance 
proposed the Law on Customs Tariff.  The Ministry of Agriculture and Rural Development was in 
charge of enacting SPS measures related to e xportation and importation of agricultural goods.  
The Ministry of Economy was responsible for enacting substantive laws with r espect to standards and 
technical regulations, measures and precious metals , and intellectual property.  The Secretary for 
European Integration was  responsible for coordinating activ ities related to Montenegro's 
EU integration. 
54. Judicial authority was vested in the courts .  The Constitutional Court assessed the compliance 
of legal acts with the Constitution.  If the Constituti onal Court determined a law or other legal act to 
be inconsistent with the Constitution, then the act (or some of its provisions) would cease to be 
effective on the day the Constitutional Court passed the decision.  The Law on Constitutional Court 
(OG MNE No. 64/08) elaborated in detail the proceeding before the Constitutional Court.  
The Supreme Court was the highest court in Montenegro, providing uniformity in the implementation 
of laws by all courts.  The present judicial system recognized specialized courts such as administrative and commercial courts.  The appellate  courts decided on appeals against decisions of the lower courts, 
delineated the competencies of the lower courts , and other matters determined by the Law. 
55. The Constitution guaranteed a general right of a ppeal against individual legal action brought 
in a court or an administrative procedure.  This constitutional principle had been implemented in the 
Law on Criminal Procedure (RM OG Nos. 71/03, 07/04 and 47/06), the Law on Civil Procedure 
(RM OG Nos. 22/04, 28/05 and 76/06) and the Law on General Administrative Procedure 
(RM OG No. 60/03).  Administrative appeals of cust oms and other Government decisions on issues 
covered by WTO Agreements were  conducted under the general rules for appeal provided in the 
Law on Administrative Procedure.  The Supreme Cour t had appellate jurisdiction only.  The Supreme 
Court decided as the third instance authority in certain cases.  Decisions of a higher court, acting as a 
court of first instance, could be appealed to the Supreme Court.   
56. The representative of Montenegro confirmed th at from the date of accession Montenegro's 
laws would provide for the right to appeal administrative actions on matters subject to 
WTO provisions to an independent tribunal in  conformity with WTO obligations including 
Article X:3(b) of the GATT 1994.  The Work ing Party took note of this commitment. 
- Authority of Sub-Central Governments 
57. The representative of Montenegro said that sub- central entities had no competencies in areas 
related to WTO rules.  A violation of WTO rules by a local authority would be corrected by the 
responsible ministry or by her Government.  Local  Governments had no direct role in foreign trade 
operations and foreign economic re lations, nor with respect to ta xation applicable to imports, 
subsidies, or investments.   
58. Article 6 of the Law on Local Self-Government Financing (RM OG Nos. 42/03, 44/03 
and 05/08) allowed municipalities to collect a surtax on the personal income tax, a tax on real estate, a consumption tax, a tax on vacant construction la nd, a tax on company name , and a local tax on the 
consumption of alcoholic and non-al coholic beverages.  The Ministry of Finance was responsible for 
the collection of all taxes through the Tax Administ ration and for the correct implementation of all tax 
laws.  The Ministry of Finance therefore had s upervisory authority over all taxes applied by the 
municipalities.   WT/ACC/CGR/38 
WT/MIN(11)/7 Page 16 
 
 
 59. The representative of Monten egro confirmed that sub-central entities had no autonomous 
authority over issues of subsidies, taxation,  trade policy or any other measures covered by 
WTO provisions.  She confirmed that, from the date of accession, the provisions of the WTO Agreement, including Montenegro's Protocol  of Accession, would be applied uniformly 
throughout its customs territory and other territories under its control, including in regions engaging in 
border trade or frontier traffic, special economic zones, and other areas where special regimes for tariffs, taxes and regulations were es tablished.  She also confirmed that when apprised of a situation 
where WTO provisions were not being applied or were applied in a non-uniform manner, central 
authorities would act to enforce WTO provisions wit hout requiring affected parties to petition through 
the courts.  The Working Party took note of these commitments. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 
60. The representative of Montenegro said that regi stration was required to carry out business 
activity, including foreign trade, in Monteneg ro.  The Foreign Trade Law (RM OG No. 28/04 
and 37/07) regulated import and export activiti es conducted by natural and legal persons.  
Registrations could be made for individual entr epreneurs, limited liability partnerships, and  
joint-stock companies.  Foreign companies could re gister a subsidiary or a branch as a joint-stock 
company, a limited liability company or as part of the foreign company - the Law on Companies 
(FRY OG Nos. 06/02; RM OG No. 17/07; OG MNE Nos. 80/08, 40/10, 73/10, 36/11 and 40/11) provided for six forms of business association: entr epreneurs, partnerships, limited partnerships,  
joint-stock companies, limited liability companies,  and part of a foreign company.  Enterprises 
wishing to engage in foreign trade had to register  at the Central Register of the Commercial Court, 
and obtain a statistical number from Montenegro's Bu reau of Statistics and a customs number for the 
settlement of import duties and other customs payments.  The Law on Business Entities (RM OG No. 06/02) had simplified the company regi stration process significantly.  A business entity 
was now deemed registered unless the Central Register of the Commercial Court rejected the 
registration documentation within four days of receipt.  The proposed line of business should be 
indicated at the time of registration.  However, entities wishing to engage in foreign trade would not 
need to specify the products to be imported or e xported.  The registration at Customs was automatic 
against payment of €10, and the Customs Admini stration imposed no additional requirements on 
firms engaging in importation or exportation relativ e to firms performing other commercial activities.  
She confirmed that business entities were not required  to have a physical presence in Montenegro in 
order to register at the Commercial Court, the Bur eau of Statistics or the Customs; they could be 
represented by an attorney.  The representative of  Montenegro confirmed that a foreign company 
registered in Montenegro as a joint-stock compan y, a limited liability company or as part of the 
foreign company would under any of these forms of registration be able to be a declarant and/or 
importer of record and that in any of the above  situations an agent of any kind would not be 
necessary. 
61. Registration as a limited partnership required a st atement or contract signed by all partners 
including the name and address of the partnership and confirmation that it had been established as a limited liability partnership, the commencement and duration of the partnership, the full name and 
ID number of each partner, the name of each limited liability partner, the share of each partner, and a 
statement whether the share consisted of money or any other form of capital.  A joint-stock company 
should submit the contract establishing the company; its statutes; details about its Board of Directors 
(names, place and date of birth, ID numbers, citizenship, address or  place of residence, occupation, 
membership in other boards); the name and addr ess of the executive direct or, company secretary and 
auditor; the company name and headquarter a ddress; statements accepting and confirming the 
functions to which they had been appointed, si gned by all board members, the executive director,  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 company secretary and auditor, and a receipt for payment of the administrative fee.  As for 
registration as "part of a foreign firm", informati on to be submitted included: the description of the 
company's activities; the address in Montenegro; the name and form of organization of the parent 
company and the name of the part of the company,  if different from that of the parent company; 
a certified copy of the Articles of Incorporation of the parent company and the certified translation 
thereof; the name(s) and address(es) of the person(s) authorized to represent the parent company in its 
dealings with third parties; and the name(s) and a ddress(es) of the person(s), residents in Montenegro, 
authorized to represent the parent company in any le gal proceedings.  This form of company aimed at 
facilitating the operation of foreign companies in Mont enegro.  Registration as "part of a foreign firm" 
was not subject to any fee or minimum capital require ment.  A foreign firm registering as "part of a 
foreign firm" did not need to invest and be establis hed in Montenegro.  Parts of foreign firms could 
act as declarants or importers of record.  Provide d all the necessary documentation was completed, the 
Central Register could only refuse the application if another entity had already registered under the 
same name or the application clearly violated another regulation (e.g. trading in narcotics).  
The Central Register required an annual registration fee of €50 for joint-stock companies; €10 for 
entrepreneurships, partnerships, lim ited liability partnerships; and €1 fo r renewal of the registration.  
The Law on Business Entities prescribed a minimum capital requirement of €25,000 for joint-stock companies, while the minimum capital needed for a limited liability company was €1.  This amount 
had to be deposited in the bank acco unt of the company.  She noted that the Government was not 
involved in the registration of companies.  She added that no minimum capital was required for 
entrepreneurs or partnerships.   
62. Individuals could register with the Central Regi stry as entrepreneurs, which provided the right 
to import for wholesale and retail purposes and engage  in retail trade.  The signed application form 
should contain information such as the full name of the entrepreneur and of the entity (if different); his/her ID number and address; and a description of the activity to be undertaken.  A foreign 
individual could also register as entrepreneur, but would need to be a resident and physically present 
in Montenegro in order to do so.  Entrepreneurs ha d the right to import and distribute products at the 
wholesale level.  Natural persons not registered  as entrepreneurs could only import goods for their 
own use or for the use of their families.   
63. She added that importers, manufacturers, wholesalers and retailers in seeds and planting 
materials were required to be inscribed in regi sters pursuant to the Law on Seeds and the Law on 
Planting Material.   
64. The representative of Montenegro said that Mont enegro also required a licence to engage in 
certain types of activity, notably for tobacco, me dicines and medical devices, narcotics and poisons, 
fertilizer, and pesticides, as well as in order to operate facilities, networks and equipment for the 
generation, transmission, distribution, supply and sale of energy.  The Energy Regulatory Agency 
issued licenses pursuant to the Law on Energy, ta king into account various conditions and criteria 
including the protection of public health, safet y and the environment; energy efficiency and 
conservation; the nature of source of energy; a nd the technical, economic and financial capability of 
the applicant.  Any foreign or domestic  entity could apply for a licence.   
65. The Law on Tobacco (OG MNE No. 48/08) re quired importers, exporters and entities 
engaged in transit of tobacco and tobacco products to be registered with the competent administrative 
authority (the Agency for Tobacco).  Activity licenses were needed for importation, exportation, 
manufacturing, wholesale trade, and retail trade in tobacco and tobacco products.  She noted that a 
company or entrepreneur registered as a wholesaler of tobacco or tobacco products - and having paid the wholesale licence fee - did not need to pay any import or export licence fee (Article 22, paragraph 5 of the Law on Tobacco).  The Agency for Tobacco delivered the licence within 30 days 
of receipt of the application.  Enterprises or entr epreneurs could apply to th e Tobacco Agency for an WT/ACC/CGR/38 
WT/MIN(11)/7 Page 18 
 
 
 activity licence to import or export raw tobacco, pro cessed tobacco and tobacco products after having 
registered in the Central Register of the Commercia l Court to perform foreign trade activity.  Pursuant 
to Article 16 of the Law of Tobacco, activity licenses were delivered provided the enterprise or 
entrepreneur fulfilled the minimum technical require ments for wholesale trade of tobacco and tobacco 
products, had not been convicted for a criminal offence of illegal trade or illegal production of 
tobacco in the three years preceding the filing of the application, had paid the prescribed fee, and - in 
the case of importation - had concluded a contract of purchase of tobacco with a foreign producer or authorized distributor.  In addition, importers of  cigarettes had to be authorized by the foreign 
producer or authorized distributor to distribute cigarettes in Montenegro's market.  The fee amounted 
to €150,000 for a five year period or €30,000 if the enterprise imported or exported tobacco products 
only (cigarillos, shredded tobacco, pipe tobacco, chew ing tobacco or snuffle tobacco).  The fee could 
be paid in five annual instalments.   
66. A Member had expressed concern about the fee payable for import of tobacco 
(activity licence).  Addressing the Member's concer n, the representative of Montenegro committed to 
amend the Law on Tobacco (OG MNE No. 48/08) appropriately.  The amendments included 
abolishing the fee in the amount of €150,000 for im portation of tobacco and granting the right to
 any 
company or entrepreneur to engage in the impor tation or exportation of tobacco, processed tobacco 
and tobacco products even if it was not established in Montenegro, if such company or entrepreneur 
was registered as an importer/exporter with the Tobacco Agency.  An importer not established in 
Montenegro could not engage in distribution a nd sale of tobacco, processed tobacco or tobacco 
products in Montenegro. The representative of Monten egro further added that amendments to the Law 
on Tobacco (OG MNE No. 76/08) abolished the fee of  €150,000 for obtaining the authorization for 
the administration of imports of tobacco, processed tobacco and tobacco products as well as the fee of 
€30,000 for other tobacco products (cigars, cigarill os, pipe tobacco, pipe tobacco, chewing tobacco 
or snuff). 
67. Enterprises or entrepreneurs wishing to make tobacco products should demonstrate the 
capability to undertake all stages of the production process from the preparation of tobacco to the 
packaging of the final products, as well as the capacity  to produce a full range of tobacco products - at 
least 1 billion cigarettes annually; and possess suita ble production premises including laboratories and 
a skilled workforce.  Tobacco manufacturers were required to provide annua l production estimates.  
She noted that the Law on Tobacco had been ame nded to abolish the requirement that tobacco 
manufacturers purchase or produce minimum 40 pe r cent of their tobacco input locally.  
The competent administrative authority determin ed compliance with the requirements, and the 
licenses were awarded - through public tender - by the Ministry of Agriculture and Rural 
Development and the Ministry of Health.  An ente rprise or entrepreneur no longer satisfying these 
requirements would have his/her licence revoked.   
68. Enterprises or entrepreneurs granted licenses fo r wholesale trade in tobacco products were 
entered in the Register of Tobacco Product Wholesalers.   Applicants were required to have at their 
disposal sufficient storage capacity (for minimum 30 tonnes of cigarettes and other items), visibly marked transportation means to supply retailers, and to submit a preliminary Agreement with a 
registered manufacturer or importer to supply tob acco products.  Wholesalers were only authorized to 
sell to registered retailers.  The licence could be re voked if the licence holder or his/her representative 
engaged in illegal trade in cigarette s or other tobacco articles, or if the other requirements above were 
no longer fulfilled.   
69. The activity licence for retail tr ade in tobacco products was valid for two years and issued 
against payment of €100 per sales outlet.  Applican ts were required to possess facilities satisfying 
minimum technical requirements, sanitary, health and other conditions in accordance with the Law on 
Sanitary Control and to submit the preliminary Ag reement with a wholesale supplier.  Licenses could  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 19 
 
 
 not be granted to persons convicted of illegal tr ade in cigarettes and other tobacco goods during the 
three-year period preceding the application.  The administrative authority decided on the licence application within 30 days.   
70. Pursuant to the Law on Medicines (RM OG No. 80/04; OG MNE Nos. 18/08 and 34/10), an 
authorization was required to be involved in the "circulation" (i.e. including importation or 
exportation) of medicines.  The responsible admini strative authority - the Agency for Medicines and 
Medical Devices - could only issue an authorization to  legal persons established within the territory of 
Montenegro.  The requirement to be established in Montenegro applied to a ll legal persons - domestic 
and foreign - and aimed at ensuring that commercia l operators wishing to trade in medicines were 
adequately staffed and equipped to  distribute and warehouse such goods.  All legal persons authorized  
for wholesale trade in medicines had to meet the sa me requirements with respect to facilities, skilled 
employees, and record keeping.  Authorization app lications were processed within 90 days and were 
subject to a €1,250 fee.  Authorizations were issu ed for unlimited period of time (except for wholesale 
and distribution of narcotic drugs) a nd were subject to a subsequent control by the Ministry of Health 
inspectorate.  Trade was limited to medicines wi th a marketing authorization, except when the 
regulatory agency issued approvals for shipments of  specific medicines.  She added that the Law on 
Medicines (RM OG No. 80/04; OG MNE Nos. 18/08 and 34/10) had been amended to guarantee the 
same treatment to domestic and fo reign importers of medicines and separate the right to import from 
the right to distribute. 
71. The Law on Prevention of Narcotic Drugs Abusing (OG MNE No. 28/11) required legal 
entities to be registered for the production of and trad e in psychotropic substanc es to engage in import 
and export of these items.  Legal persons authorized for wholesale trade in medicines had to apply for 
additional authorization for trade in medicines cont aining narcotic drugs and psychotropic substances. 
The authorizations were valid for five years re newable. The Law on Chemicals (RM OG No. 11/07) 
obliged legal entities and entrepreneurs to register w ith the Ministry of Health in order to import, 
export, sell or store poisonous substances.  Carriers of poisonous substances we re required to register 
with the Ministry of Transportation and Maritime Affa irs.  Approvals to trade in poisonous substances 
were issued by the sanitary inspection of the Republic  for wholesalers, and by the municipal sanitary 
inspection for retailers.   
72. Activity licenses were also required fo r fertilizer under the Law on Fertilizer 
(RM OG No. 48/07).  Pursuant to Article 24 of the Law, any company or entrepreneur, whether 
domestic or foreign, could import fertilizer provide d it had a distribution Agreement for the territory 
of Montenegro; owned or leased bonded warehouses wh ich met the requirements for storing fertilizer; 
employed at least one person with a college degree in the field of agriculture responsible for the 
acquisition, storage and handling of fertilizer; and was registered at the Register of Importers of the 
Ministry of Agriculture and Rural Development.  The Law on Fertilizer had been subsequently 
amended to allow persons not established in Mont enegro to import fertilizers without any activity 
licence. 
73. Importation of pesticides was subject to regist ration at the Register of Importers of the 
Ministry of Agriculture and Rural Developm ent (Article 41 of the Law on Pesticides, 
OG MNE No. 51/08).  Any registered company or en trepreneur, whether domestic or foreign, could 
import pesticides authorized for use in Monteneg ro.  Importers not licensed for distribution or 
wholesale of pesticides in Montenegro were requi red to deliver the imported pesticides only to 
companies licensed for such activities.  
74. Some Members expressed concern about Mont enegro's regime governing trading rights, 
recalling that the right to import (and export) produc ts without establishing a subsidiary or physical 
presence was a fundamental principle of the WTO.  Whether such a requirement applied "equally" to WT/ACC/CGR/38 
WT/MIN(11)/7 Page 20 
 
 
 domestic and foreign suppliers wa s of no consequence as domestic suppliers, by definition, would 
have an established presence in Montenegro whereas foreign suppliers would not.  The establishment 
requirement was an unnecessary obstacle to importation, and it would be a violation of Articles III and XI of the GATT 1994 to require an investment in order to be allowed to import.  The higher 
charge applied to renew an expired licence relativ e to an unexpired licence also appeared unjustified 
according to Article VIII of the GATT 1994.  While a ppreciating the need to protect consumers, some 
Members failed to understand how a requirement fo r foreign pharmaceutical companies to establish a 
subsidiary in Montenegro in order to import, woul d further this objective.  In any case, the measure 
restricted the right to trade imported pharmaceutic al goods in violation of Articles III and XI:1 of 
the GATT 1994.  A Member also questioned the rati onale behind the measure  prohibiting individual 
entrepreneurs to import for wholesale trade. 
75. The representative of Montenegro replied that Montenegro was aware of the problem posed 
by the requirement to be established in Monteneg ro to import or export and had amended the Customs 
Law appropriately (OG MNE No. 21/08).  The ame ndments eliminated the establishment requirement 
for both legal and natural persons wi shing to engage in import and e xport activities, and provided for 
the right of persons not established in Montenegro to participate in all customs procedures, including 
import and export, and therefore, in her view, wa s in full conformity with Articles III and XI of 
the GATT 1994.  Foreign persons not established in  Montenegro could now act as importers of 
record.  They did not need to register at Customs or  deposit any surety in order to import, but they had 
to be represented by an agent in Montenegro .  Foreign persons could choose any company or 
entrepreneur established in Montenegro and regist ered with the customs authorities to be his/her 
agent.  Agents were required to register at Cust oms.  The application should be accompanied by a 
copy of the Certificate of Registration issued by the Commercial Register.  She noted that the 
importer of record remained the exclusive owner of  the goods at all times and the only party who had 
the right to dispose of the goods and was liable for all the duties and charges associated with customs 
clearance.  She added that foreign persons not estab lished in Montenegro did not have the right to 
distribute goods in Montenegro.  However, such  persons were free to select a distributor or 
distributors of their choice, provided such a distributor  or distributors had the right to distribute their 
respective products in Montenegro.   
76. The Law on Medicines (OG MNE No. 18/08) had al so been amended to make Montenegro's 
activity authorization regime for medicines comp liant with Articles III and XI of the GATT 1994.  
Pursuant to Article 61, any company, whether Mont enegrin or foreign, including legal persons not 
established in Montenegro, could import medicine s provided the company was registered at the 
Agency for Medicines and Medical Devices as an im porter.  Importers not established in Montenegro 
were required to deliver the imported medicine s only to companies licensed for wholesale.  
Such persons did not have the right to distribute or sell them in any other way in Montenegro.  
She added that implementing regulations concerning the right of importers without a distribution or 
wholesale authorization to import were being devel oped.  In addition, amendments to the Law on 
Medical Devices (RM OG No. 79/04; OG MNE No. 53/09) were adopted on 7 August 2009.  These amendments allowed persons  not established in Montenegro to import medical devices under 
the same procedures as medicines.  She added th at the Law on Internal Trade (OG MNE No. 49/08), 
which had been adopted by the Parliament on 15  August 2008, had remove d the prohibition against 
individual entrepreneurs to import for wholesale tr ade.  All these amendments provided for a clear 
distinction between the right to import and the ri ght to distribute.  In her view, Montenegro's 
legislation was in conformity with Articles III and XI of the GATT 1994. 
77. The representative of Montenegro confirmed th at from the date of accession Montenegro 
would ensure that its laws and re gulations relating to the right to  import and to export goods, and 
the implementation of such laws and regulations w ould be in full conformity with WTO obligations, 
including Articles VIII:1(a), XI:1, III:2 and III:4 of the GATT 1994.  She also confirmed that, to this  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 21 
 
 
 end, individuals and firms, regardless of national origin, would be able to  import and export products 
as importers or exporters of record, with no requi rement of physical presence or investment in 
Montenegro.  The sole condition to serving as importer or  exporter of record would be to register with 
the relevant Montenegro authority as described in  paragraph 61.  The Working Party took note of 
these commitments. 
A. IMPORT REGULATIONS 
- Ordinary customs duties  
78. The representative of Montenegro said that th e Law on Customs Tariff had been enacted on 
7 December 2005.  This Law had entered into force on 1 January 2006, replacing the Decree on 
Customs Tariff (RM OG Nos. 47/03 and 25/05).  The Law, based on HS 2002  with changes agreed 
in 2004, conformed to the nomenclature of the EU at  the 8-digit level.  The applied tariff rates ranged 
from zero to 30 per cent ad valorem .  Compound duties were levied on some agricultural goods.  
She added that the Law on Amendments and Modifications of the Law on Customs Tariff 
(RM OG No. 17/07) had been enacted in March 2007.  Montenegro's customs tariff nomenclature had 
been harmonized with the combined nomenclat ure of the EU pursuant to the Decree on the 
Harmonization of the Customs Tariff Nomenclature for the Year 2008, adopted on 20 December 2007, and the Law on Ratification of the Temporary Agreement on Trade between 
Montenegro and the EU.  The new customs tariff base d on HS 2007 comprised 9,767 tariff lines at the 
10-digit level.  In accordance with the obliga tions under the SAA (Article 18, paragraph 2), 
Montenegro updated its Customs Tariff annually in order to comply with the Combined 
Nomenclature.  The last adjustment was prescribed  in the Decree on Harmonization of Customs Tariff 
in 2011 (OG MNE Nos. 79/10 and 31/11).  The Law on Customs Tariff and the Regulation on the harmonization of the Nomenclature were accessibl e at the following website:   www.mif.gov.me. 
79. Specific duties were applied on certain fruit and vegetables (Table 4) pursuant to the Law on 
Customs Tariff; the Decision on Seasonal Customs Duties on Import of Certain Agricultural Products 
had been abolished with the entry into force of the Law in January 2006.  Specific duties were an 
integral part of Montenegro's customs tariff.  She stated that any specific du ties applied in the future 
by Montenegro as a WTO Member would be with in the bound rates negotiated during the accession 
process.  She further confirmed that Montenegro wo uld bind all its tariff rates of duty on all imported 
goods.  
80. In response to requests from Members, the re presentative of Monten egro confirmed that 
Montenegro would become a participant to the Ministerial Declaration on Trade in Information 
Technology Products (ITA) upon the date of accessi on to the WTO.  She further confirmed that 
Montenegro would begin the notification process by submitting its ITA Schedule to the Committee of 
Participants on the Expansion of Trade in Info rmation Technology Products for verification.  
The representative of Montenegro also confirme d that from the date of accession to the WTO, 
Montenegro would bind tariff rates on all products subject to the ITA at zero.  The Working Party took note of these commitments.
 
81. Montenegro undertook bilateral market access negotiations on goods with members of the 
Working Party.  The results of these negotiations are contained in the Schedule of Concessions and 
Commitments on Goods (document WT/ACC/CGR/38/Add. 1) annexed to Montenegro's Protocol of 
Accession to the WTO. WT/ACC/CGR/38 
WT/MIN(11)/7 Page 22 
 
 
 Table 4:  Specific Duties 
HS 2007 Description 
0701 Potatoes, fresh or chilled: 
0701 90 - Other: 
0701 90 50 00 ---New, from 1 January to 30 June 
0702 00 00 Tomatoes, fresh or chilled 
0702 00 00 10 - From 1 April to 31 August 
0707 00 Cucumbers and gherkins, fresh or chilled: 
0707 00 05 - Cucumbers: 
0707 00 05 10 - - From 1 April to 30 June 
0707 00 90 - Gherkins: 
0707 00 90 10 - - From 1 September to 31 October  
0805 Citrus fruit, fresh or dried: 
0805 20 -Mandarins (including tangerines and satsumas); clementines, wilkings and similar citrus 
hybrids: 
0805 20 10 - - Clementines: 
0805 20 10 10 - - - From 1 October to 31 December  
0805 20 30 --Monreales and satsumas: 
0805 20 30 10 - - - From 1 October to 31 December 
0805 20 50 - - Mandarins and wilkings: 
0805 20 50 10 - - - From 1 October to 31 December  
0805 20 70 - - Tangerines: 
0805 20 70 10 - - - From 1 October to 31 December  
0805 20 90 - - Other: 
0805 20 90 10 - - - From 1 October to 31 December  
0806 Grapes, fresh or dried: 
0806 10 - fresh: 
0806 10 10 - - Table grapes: 
0806 10 10 10 - - - From 1 July to 30 September  
0806 10 90 - - Other: 
0806 10 90 10 - - - From 1 July to 30 September  
0807 Melons (including watermelons) and papaws (papayas), fresh:  
0807 11 00 - - Watermelons: 
0807 11 00 10 - - - From 1 July to 31 August  
0808 Apples, pears and quinces, fresh:  
0808 10 - Apples: 
0808 10 10 00 --Cider apples, in bulk,  from 16 September to 15 December  
0808 20 - Pears and quinces: 
  - - Pears: 
0808 20 10 00 ---Perry pears, in bulk, from 1 August to 31 December  
0809 Apricots, cherries, peaches (including nectarines), plums and sloes, fresh:  
0809 30 - Peaches, including nectarines: 
0809 30 90 - - Other: 
0809 30 90 10 - - - From 1 June to 31 August 
0810 Other fruit, fresh: 
0810 50 00 - Kiwifruit: 
0810 50 00 10 - - From 1 November to 31 March  
  WT/ACC/CGR/38 
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 - Other duties and charges  
82. The representative of Montenegro said that an a dditional levy had been imposed on 124 tariff 
lines pursuant to the Decree on Special Charge on Importation of Agricultural and Food Products 
(RM OG Nos. 61/03 and 63/03).  The Decree had been abolished with the entry into force of the 
Law on Customs Tariff in January 2006.  She ack nowledged that the "special charge" had been 
maintained to protect domestic production and thus had not constituted a charge or fee for services 
rendered.  She added that the "special charge" had been converted to a specific element in the 
compound duty rates, applied to 311 agricultural tari ff lines pursuant to the Law on Customs Tariff, as 
amended in March 2007.   
83. The representative of Montenegro confirmed that  Montenegro would not list any "other duties 
and charges" in its Schedule of Concessions a nd Commitments on Goods under Article II:1(b) of 
the GATT 1994, binding such charges at "zero" from the date of accession.  The Working Party took 
note of this commitment. 
- Tariff rate quotas, tariff exemptions  
84. The representative of Montenegro said that Montenegro had applied tariff rate quotas only in 
the context of the free trade Agreements with Albania, Croatia, and Moldova for "sensitive" 
agricultural products as described in document WT /ACC/CGR/3/Add.1, Annex 9.  The representative 
of Montenegro further added that on 11 Febr uary 2011, Albania, Croatia, FYROM, Moldova, 
Montenegro and Serbia signed the Additional Pr otocol to the Agreement on Amendment of and 
Accession to the Central European Free Trade Agreemen t.  According to this Protocol, all tariff rate 
quotas that Montenegro applied to Albania, Croatia  and Moldova would be a bolished.  She further 
added that with respect to Croatia, the Additiona l Protocol was in force since 1 July 2011.   
85. The representative of Montenegro said that th e procedure for obtaining tariff exemptions was 
laid down in the Decree on Procedure for Rea lization of Rights on Customs Duty Exemption 
(RM OG No. 22/03).  Article 184 of the Customs Law (RM OG Nos. 07/02, 38/02, 72/02, 21/03, 
29/05 and 66/06; OG MNE No. 21/08) provided for tariff exemptions for:  (i) goods specified by an 
international Agreement (i.e. FTA) binding on  Montenegro; (ii) exchanges of goods of 
non-commercial nature (no payment) between natural persons; (iii) medals and awar ds at international 
events, presents as part of international relations; (iv) goods brought into Montenegro as humanitarian 
assistance, to be distributed free of charge; (v) equi pment for the use of humanitarian organizations or 
handicapped people; (vi) goods satisfying "basic huma n necessities" (e.g. food , medications, clothes, 
and bed linen); and (vii) trademarks, patents, designs, supporting documents , and application forms 
forwarded for the registration of copyright and industrial property rights.  Exempt were also application forms and documents submitted to the State authorities, materials representing evidence in 
courts and other proceedings, printed material exchanged between public institutions and banks, 
securities, submissions to international contests or ganized in Montenegro, official trade documents, 
and letter mail.   
86. Montenegro also accorded tariff exemptions fo r fire-prevention and fire-fighting equipment; 
goods inherited by residents of Montenegro; im ports for the reconstruction, maintenance and 
restoration of protected cultural monuments, approved by the competent authority; goods to be used in museums, archives, restoration, lite rary activities, art, theatre and musicals, and filming activities 
(subject to the approval of the competent authorit y); goods donated to cultura l institutions and other 
non-profit cultural activity upon approval of the co mpetent authority; goods brought by scientists, 
writers and artists as own works; equipmen t not produced in Montenegro imported by 
State authorities; and investment goods brought into  Montenegro by a fore ign party in accordance 
with relevant legislation.  Montenegrin citizens liv ing within five kilometres of the State border, and WT/ACC/CGR/38 
WT/MIN(11)/7 Page 24 
 
 
 owning plots of land in such a strip of Montenegro's neighbours were able to bring into Montenegro 
the agricultural, forestry or fishing yields from these plots free of import duty.  Goods falling under this provision - established to facilitate the move ment of people and goods in border areas - were 
intended for personal use and not for the general stream of commerce.  The catches of sea-going 
fishing vessels of Montenegro were exempt pursuant to Article 188 of the Customs Law.  Article 185 
provided an exemption, upon request, for domestic goods  exported and subsequently returned in the 
same state to the customs territory of  Montenegro within two years.   
87. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would administer and apply its tariff rate quotas and tariff exemptions in conformity with the 
WTO Agreement, including Articles I, II, VIII, X and XIII of the GATT 1994 and the 
WTO Agreement on Import Licensing Procedures.  The Working Party took note of this commitment. 
- Fees and charges for services rendered 
88. The representative of Montenegro said that Article 291 of the Customs Law 
(RM OG Nos. 07/02, 38/02, 72/02,21/03, 29/05 and 66/06; OG MNE No. 21/08) allowed the customs 
administration to charge a fee for customs clea rance.  The fee could be a specific amount or 
ad valorem.   Depending on the procedure applied, the customs clearance fee ranged from zero to 
1 per cent ad valorem,  or €3 to €120, according to the Decree on Amount and Procedure of Charging 
of Fees for Services Rendered by the Customs Authorities (RM OG Nos. 20/03 and 62/04).  
89. The Law on Administrative Fees (RM OG Nos. 55/03 and 81/05; OG MNE Nos. 22/08, 
77/08, 40/10 and 20/11) determined a number of admi nistrative charges related to importation or 
exportation, notably for documentation and certifi cates arising from veterinary, sanitary, and 
phytosanitary inspections; customs forms, declarations, controls, classifications, complaints; and for 
the issuance of import and export licenses.  The fees,  which were all stipulated in specific amounts, 
are listed in Table 5.  Certificates of origin (Form A) were issued by the Chamber of Commerce against payment of €8.  She confirmed that a certificate of origin was not a mandatory customs 
document for importation or exportation.  The am endments made to the Law (OG MNE No. 22/08) 
aimed at levelling administrative fees related to the import, export and transit of the goods, as well as 
consular fees, intellectual property fees, and fees for international public transport licenses.  Other 
amendments to the Law (OG MNE No. 77/08) included  equalizing the amounts for fees to be paid by 
domestic and foreign legal persons  when engaging in foreign trade transactions, widening the basis 
for the fees related to the work carried out to in crease public security, railroad traffic and hiring of 
foreign citizens.  In addition, the amendments sti pulated weight-related fees.   Further amendments 
(OG MNE No. 20/11) stipulated abolishing customs f ees (JCI - unique customs declaration, certificate 
on the condition of the goods, direct shipment, SCP (duty free shops) fees, etc.) as well as the insurance-related fees. 
90. Quality controls on imported or exported agricultu ral and food products were effected against 
a fee of €4.60 for shipments of up to 20 tonnes, a nd €0.30 for every additional tonne, according to the 
Decision on the Level and Method of Paying Fees C overing Costs of Quality Control of Agriculture 
and Food Products and Products Ma de Thereof Destined for Export or Import (FRY OG Nos. 62/97 
and 55/98).  This regulation had been repealed by the Decree on Joint Exercise of Market, Sanitary, 
Veterinary and Agricultural Inspections in Fore ign Trade of Goods (RM OG 33/00, 12/01, 57/03 
and 31/06) which ceased to be valid.  At present, Mo ntenegro applied the Decree on Fees Charged for 
Health Inspection of Plant Shipments and Control of Pesticides and Fertilizers in Traffic Through the 
Territory of FRY (FRY OG No. 71/00), and the Decision on the Level of Compensation for Veterinary-Sanitary Control in the Trade Across  the Border of the Republic of Montenegro 
(RM OG Nos. 50/05 and 37/10).  The Decision (RM OG No. 50/05) had been amended in 2010 (OG MNE No. 37/10) as regards the fees charged for ve terinary inspection in transit for consignments  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 of meat products, fat, milk and dairy products; eggs and egg products; seed for artificial insemination 
and fertilized ova; consignments of  fish and fish products; bees and apiary products; silk worms; 
frogs, snails, shellfish, turtles a nd other lizards and molluscs and thei r products; consignment of suet, 
technical fat of animal origin; meals of animal origin (meat meal, meat-bone meal, blood meal, fish 
meal, feather meal, etc.); consignments of animal feed, consignment of animal feed containing 
products of animal origin; consignments of hide, bone, wool, hair, bristles, mane, tails, horns, hooves, 
animal innards and animal bodily fluids, in the tr ansport unit.  According to the amended Decision, 
the fee for these items had been reduced to €30, re gardless of the weight of the shipment, provided 
that the fee would increase by €5 for each 15 minut es of checking the shipment by the veterinary 
inspector at the border. 
91. Some Members noted that Montenegro applied ad valorem  charges for customs clearance and 
for veterinary-sanitary controls, a nd recalled that fees and charges not related to a specific service or 
assessed on an ad valorem  basis were WTO-inconsistent, as such fees were required to approximate 
the cost of services rendered, and not to be based on the value of the good assessed, or applied for the 
purpose of raising revenue for general purposes.  Mont enegro was requested to confirm that it would 
eliminate fees not meeting the requirements of Article VIII of the GATT 1994, or revise the fees to bring them into conformity with WTO rules.   
92. In reply, the representative of Montenegro said that her Government was aware of the issue 
and that all non-conforming fees were being amende d to be fully compliant with Article VIII of 
the GATT 1994 prior to the date of accession.  The ve terinary-sanitary fee had been amended through 
the Decision on the Level of Compensation for Vete rinary-Sanitary Control in the Trade Across the 
Border of the Republic of Montenegro (RM OG No. 50/05).  As for the customs clearance fee, it had 
been revised through the Law on Amendments and Modifications of the Customs Law of October 2006 (RM OG No. 66/06); the Decree on the Amount and Procedure for Charging Fees for Services Rendered by the Customs Authorities of December 2006 (RM OG No. 04/07), which had 
later been abolished; and the Decree on the T ype, Level and Manner of Charging of Fees for the 
Services Rendered by the Customs Authority issu ed in 2008 (OG MNE No. 47/08).  Customs fees 
were now fixed amounts reflecting the approximate costs of services rendered.  Pursuant to the 
Regulation (OG MNE No. 47/08), customs processing fees had been eliminated and a customs administration fee of €15 per hour per customs officer involved was applied only for the clearance of goods at a venue not designated for such purpose or outside the normal working hours.  
She confirmed that Montenegro no longer applied any ad valorem  fees on or in connection with 
importation or exportation. 
93. The representative of Montenegro confirmed th at, from the date of accession, all fees and 
charges for services applied in connection with importation and exportation would be applied in 
conformity with the WTO Agreement, including Ar ticles VIII and X of the GATT 1994.  She further 
confirmed that, upon request, Montenegro would pr ovide WTO Members with information regarding 
the application and level of such fees and charges,  revenues collected and their use.  The Working 
Party took note of these commitments. 
- Application of internal taxes to imports 
94. The representative of Montenegro said that al cohol and alcoholic beverages, tobacco, and 
mineral oils, derivatives and substitutes were subject ed to excise tax according to the Law on Excise 
Tax (RM OG Nos. 65/01, 12/02, 76/05, 76/08, 50/09  and 78/10) of 28 December 2001.  The products 
concerned and the respective rates are listed in Tabl e 7.  Excise taxes on imports were collected at the 
time of importation by the customs authorities, whereas the tax authorities collected the tax on 
domestically-produced goods when the goods were rel eased for free circulation.   Excise taxes were 
not collected on exports.  Following Montenegro's independence in June 2006, the special taxation WT/ACC/CGR/38 
WT/MIN(11)/7 Page 26 
 
 
 regime applied in trade with Serbia had been eliminated.  Goods importe d from Serbia were now 
subject to excise taxes as any other imported goo d and goods exported to Serbia were exempt from 
any such taxes.  She added that natural persons making small quantities of alcoholic beverages solely 
for personal use were exempt from the excise tax. 
95. Ethyl alcohol (ex. HS 2207) used as a raw materi al in the manufacture of fermented alcoholic 
beverages, vinegar, and chemical  and cosmetic products (only dena tured ethyl alcohol) was exempt 
from excise tax.  Chocolate containing alcohol (e x. HS 1806) was exempt provided the amount of 
alcohol did not exceed 8.5 litres of pure alcohol per 100 kilograms; the limit for other food items was 
five litres of pure alcohol per 100 kilograms.  Institu tions in the health sector could obtain a licence 
from the tax authorities allowing them to purchase ethyl alcohol for medical purposes without 
payment of the excise tax.  The excise tax was not  paid on mineral oils used as fuel in air and 
maritime traffic and as fuel for fishing boats (except when used for private purposes), for the 
production of electric energy or the joint production of electric and heating energy, for further processing, or for injection in bl ast furnaces for chemical reduction pu rposes as an additive to coke as 
the basic fuel.  Reimbursement and drawback of exci se duties was available in all these cases, as well 
as for exported goods on which excise tax had been paid; importers paying excise duties and 
subsequently returning the goods in an unchange d condition; and licensees acquiring excise goods at a 
price including the excise, and using such goods in  an excise goods warehouse for the production of 
excise goods.   
96. Article 32 of the Law on Excise Tax exempted from excise tax goods sold on board vessels 
and aircraft in international transport; excisable goods  in travellers' personal l uggage within the limits 
established by customs legislation; and fuel in the standard reservoirs of motor vehicles, vessels, and 
aircraft provided the fuels were not intended for further sale and exempt from the payment of import 
duties in accordance with the custom s legislation.  The excise tax was not payable on goods brought 
into Montenegro for the official needs of diplomatic and consular representative offices accredited in 
Montenegro, international organizations (by intern ational Agreement), and for the personal needs of 
their staff pursuant to Article 31 of the Law.  The Ministry of Foreign Affairs and European 
Integration issued certificates verifying that the app lication of the excise tax exemption was subject to 
a reciprocity requirement based on an international Agreement.   
97. Noting that the excise tax rates applied to still wines (220421 and 220429) were very different 
from those applied to other ferm ented beverages, including similar products, a Member asked 
Montenegro to explain how it ensured that importe d grape wines were not taxed at a less favourable 
rate than like domestic or imported products, as required by Articles I and III of the GATT 1994.  
In response, the representative of Montenegro not ed that imported and domestic products, including 
wines from grape, were subject to the same tax rate  in accordance with Article 2 of the Law on Excise 
Taxes.  There was no exception to this rule.  She a dded that Montenegro prod uced grape wines, beer 
and grape brandy.  The Law on Excise Taxes had been  amended to introduce the same excise tax rates 
for like products - for sparkling wines and other sp arkling fermented beverages and for still wines and 
other non-sparkling fermented bevera ges (see Table 6 in Annex 2).   
98. The representative of Montenegro said that a sal es tax had been replaced by value added tax 
on 1 April 2003 pursuant to the Law on Value Added Tax (RM OG Nos. 65/01, 12/02, 72/02, 21/03 and 76/05; OG MNE No. 16/07).  VAT was levied on imported and domestically-produced goods at a 
rate of 17 per cent.  A reduced rate of 7 per cent was applied to some products and services.  One of 
the main reasons for  amending the Law (OG MN E No. 16/07) was the extension of goods and 
services subject to a 7 per cent VAT to include the services provided in the ports (Article 24a, 
point 15a) and the ITA equipment (Article 24a, poi nt 15b).  The tax base for imported goods was the 
customs value inclusive of import duty and excise tax, if applicable, as well as transportation and 
distribution costs to the first destination in Monten egro.  The obligation to pay VAT arose at the same  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 time as the obligation to pay customs duty and othe r import charges.  Goods temporarily exported for 
processing, repair or mounting were assessed VA T upon return on the value added abroad and any 
materials used for these purposes.  Certain goods and services were VAT exempt (see Tables 7(a) 
(goods) and 7(b) (services)).  In addition, medi cines and medical devices were zero rated in 
accordance with the Law on Amendments to the Law on Value Added Tax (RM OG No. 76/05).  
In response to a question, she confirmed that th e excise tax was included in the taxable base of 
domestic goods subject to VAT when the products we re placed on the market for final consumption. 
Table 7(a):  Goods Exempt from VAT 
Tariff Number Product Name 
4907 00 10 00, 4907 00 30 00, 4907 00 90 00 Post mark, administrative and judicial fees and tax 
mark 
7106, 7108, 7110 Gold and other precious metals 
 
Table 7(b):  Services Exempt from VAT 
Services Exempt from VAT in the Public Interest: 
1. Public postal services performed by the post office of Montenegro 
2. Health services and care and delivery of goods including supply of human organs, blood and human 
milk performed in accordance with the law go verning the field of health care activities 
3. Social security services and th e supply of goods directly linked to social security services that are 
performed in accordance with the regulations gove rning the field of soci al security services 
4. Services in pre-school education and the education and training of children, young people and adults, 
including the supply of goods and services direc tly linked to these activities, provided these activities 
are performed in accordan ce with the regulations governing this field 
5. Services and deliveries of goods by nursery sch ools, primary and secondary schools, universities, and 
by student catering and boarding institutions 
6. Services related to culture including tickets for cu ltural events and supply of goods directly related to 
those services provided by non-profit organizations in accordance with regulation governing the field of 
culture 
7. Services related to sport and sport education, which perform non-profit organizations (associations, etc.) 
8. Monthly subscription on radio and TV program 
9. Religious services and supply of goods directly linked to religious services performed by religious 
institutions in order to satisfy the needs of the faithful, in accordance with the regulations related to 
those communities 
10. Services provided by non-Government organizati ons established in accordance with the regulations 
governing the activities of those organizations unless it is unlikely that such exemptions would lead to a 
distortion of competition 
Other VAT exempt services: 
1. Insurance and reinsurance services, including se rvices provided by insura nce brokers and agents 
2. Supply of immovable propriety, except the first transfer of the ownership rights that is the rights to 
dispose of newly-constructed immovable property 
3. Services of leasing and subletting of residential houses, apartments and permanent residential premises 
for longer than 60 days and lease of agricultural land or forests, which are registered in land books WT/ACC/CGR/38 
WT/MIN(11)/7 Page 28 
 
 
 Services Exempt from VAT in the Public Interest: 
4. 
(a)  
(b) 
  
(c) 
  
(d) 
 (e) Banking and financial services, such as: 
Approving and managing credits, and approving and managing guarantees that is other forms of credit insurance on the part of the lender; 
Services relating to the management of deposits, savings, bank accounts, conducting payment 
transactions, transfers, executing due liabilities, cashi ng cheques or other financial instruments, except 
for recovery of debts and factoring; 
Transactions, including the issuing of bank notes an d coins, which are legal tender in any country, 
excluding collector items; the collector items shall be considered to be coins of gold, silver and other material, bank notes not in use as legal tender, and coins with a numismatic value; 
Trading in shares that is other forms of participati on in companies, bonds and other securities, including 
their issuance, except for the safekeeping of securities; Investment fund management.   
5. Services of games of chance 
99. The VAT exemptions applied equally to imported and domestically-produced goods.  
In addition, no VAT was levied on:  (i) goods in tr ansit; (ii) goods re-imported in an unchanged state 
by the person exporting the goods; (iii) re-imported goods having been subject to a service abroad, 
provided the refund of VAT had not been recognized there; (iv) imports by State bodies or humanitarian organizations to be distributed free of ch arge to alleviate social needs (excluding coffee, 
alcoholic beverages, tobacco and tobacco products, and motor vehicles other than rescue vehicles); 
(v) duty-free goods imported by diplomatic missions, c onsulates, international organizations and their 
staff within the limits and conditions set forth in  international conventions  and as approved by the 
Minister of Foreign Affairs; (vi) services relate d to imported goods, provided the value of such 
services was included in the tax base; and (vii) go ld, other precious metals, bank notes, and coins 
imported by the Central Bank of Montenegro.  Temporarily imported goods were exempt from VAT 
provided they were also exempt from customs duties according to the customs legislation.  
Other special exemptions (Article 30 of the Law) rela ted to imported goods to be stored in an excise 
warehouse, imports to be submitted to the customs authorities and stored temporarily in accordance 
with customs regulations, goods destined to a free customs zone, and imports to be subjected to a 
customs warehousing procedure or import proced ure for export under a suspension arrangement.  
VAT exempt goods subsequently put into free circ ulation would be subject to VAT (to the same 
amount that should have been  applied upon importation). 
100. The representative of Montenegro added that fa rmers, not themselves registered to pay VAT 
but delivering agricultural or forestry goods and services to registered taxpayers, could claim 
compensation for VAT charged on their inputs at a flat rate of 5 per cent, as amended by the Law on Amendments to the Law on Value Added Tax (RM OG No. 76/05).   
101. Asked to explain why banking, insurance and games of chance were exempt from VAT, the 
representative of Montenegro said that these servi ces were regulated under separate legislation, 
i.e. the Law on Tax on Insurance Premium (RM OG Nos. 27/04 and 37/04) and the Law on Games of 
Chance (RM OG No. 52/04). 
102. In response to specific questions, the representative of Montenegro stated that:  (i) the Law on 
Excise Tax and the Law on Value Added Tax were the only laws governing the taxation of imports 
and domestic goods; (ii) all domestic  taxes levied on goods were applied no less favourably to imports 
than to similar domestically-pro duced goods as per Article III of the GATT 1994; (iii) the eligibility 
for the excise tax exemption for mineral oil used  in blast furnaces was not subject to any export 
performance or import substitution requirements; and that (iv) imports from, and exports to, all 
countries received identical treatment  in the application of domestic taxes.  She added that the Law on 
Value Added Tax was undergoing revision with a view to making currently VAT-exempt goods 
subject to VAT at a reduced rate of 7 per cent.  Th e representative of Montenegro further stated that  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 the amendments made to the Law (OG MNE No. 16/07) increased the number of goods and services 
subject to a reduced VAT rate of 7 per cent (i.e . computer equipment and services provided in the 
ports).  She noted that the reductions defined by  Article 24a of the Law on Value Added Tax (RM OG 
No. 76/05) had not been changed.   
103. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would apply its internal taxes, including excise ta xes and value added taxes, in a non-discriminatory 
manner to imports from all WTO Members and to domestically produced goods, in accordance with 
the WTO Agreement, including the Agreement on  Agriculture, the Agreement on Subsidies and 
Countervailing Measures and Articles I and III of the GATT 1994.  The Working Party took note of 
this commitment. 
- Quantitative import restrictions, including prohibitions, quotas and licensing systems  
104. The representative of Montenegro said that Article 14 of the Foreign Trade Law 
(RM OG No. 28/04 and 37/07) stipulated that goods c ould not be imported if trade in such goods was 
banned in Montenegro.  Her Government could al so ban imports, temporary imports, or good in 
transit banned under the legislation of the country of  export, origin, or destination.  The Decision on 
the Control List for Export and Import of Goods (R M OG No. 44/04) of 17 June 2004 contained a list 
of dangerous waste banned for importation into Montenegro.  The Decision on the Control List for Export and Import of Goods was amended each y ear to align it with the Customs Tariff.  
The Decision currently in force was published in the Official Gazette No. 10, dated 11 February 2011.  
In order to prevent pests and diseases endangeri ng human or animal health, Montenegro could 
prohibit imports of animals, plants, animal and plant products and other goods from specific countries 
or territories based on international recommendations  and guidelines, available scientific evidence, 
and the animal and plant health status of such c ountries or territories.  Any such restrictions were 
applied consistently with the Agreement on the Appl ication of Sanitary and Phytosanitary Measures.  
A list of imported goods prohibited according to the Law on Plant Health Protection 
(RM OG No. 28/06; OG MNE No. 28/11) is reproduced in Table 8.  According to Article 15 of the 
Foreign Trade Law, quantitative import restrictions c ould only be applied in the form of safeguard 
measures.   
105. The representative of Montenegro said that the Decision on Control List for Export and 
Import of Goods (RM OG No. 44/04) defined the goods subject to licenses, approvals or certificates.  The full list - more than 30 pages of items - was submitted in document WT/ACC/CGR/3/Add.1, 
Annex 11.  She noted that a revised Decision on Cont rol List for Export, Import and Transit of Goods 
(RM OG No. 19/06), including the GATT/WTO justifi cations for the specific measures, had been 
issued on 16 March 2006.  The revised Decision in cluded a general import/e xport control list, and 
specific lists enumerating narcotics, precursors,  substances damaging the ozone layer, wastes, 
endangered wild plant and animal species (CITES) , and protected rare, rarefied, endemic and 
endangered plant and animal species.  She noted th at the number of products subject to non-automatic 
import licensing (listed in Annex I of the revised  Decision) had been substantially reduced.  
Information on Montenegro's non-automatic impor t licensing procedures was provided in document 
WT/ACC/CGR/18.   
106. The Foreign Trade Law (RM OG Nos. 28/04 and 37/07) and the Decree on Implementation of 
Foreign Trade Law (RM OG Nos. 52/04 and 44/07), the Decision on Control List for Export, Import 
and Transit of Goods (RM OG Nos. 45/07 and 44/07; OG MNE No. 10/11), the Law on 
Administrative Procedure (RM OG No. 60/03; OG MNE No. 32/11), and the Law on Administrative Dispute (RM OG No. 60/03) constituted the general legislative basis for the issuance of import licenses.  In addition, depending on the product, licenses were issued on the basis of the Law on Foreign Trade in Arms, Military Equipment and Du al Use Goods (OG MNE No. 80/08), the Law on WT/ACC/CGR/38 
WT/MIN(11)/7 Page 30 
 
 
 Environmental Protection (RM OG No. 48/08), the Law on the Basis of Environment Protection 
(FRY OG No. 24/98), the Law on Transportation of Hazardous Substances (FRY OG No. 27/90), the Law on Production and Circulation of Waste Subs tances (FRY OG Nos. 15/95, 28/96 and 37/02), 
the Law on Protection against Ionising Radiatio n and Radiation Safety (FRY OG No. 46/96), 
Decision on Placement under Protection of Specific Plant and Animal Species (RM OG No. 76/06), 
the Law on Prevention of Narcotic Drugs Abusin g (OG MNE No. 28/11), and the Veterinary Law 
(RM OG No. 11/04).  In response to a question, she noted that the legal provisions implementing the 
procedural requirements of the WTO Agreement on Import Licensing Procedures, including those of Articles 1 to 3, were to be found in the Foreign Trade Law (Articles 19 to 27a) and the Decree on 
Implementation of Foreign Trade Law (Articles 3 to 7). 
107. The non-automatic licenses were not intended to restrict the quantity or value of imports.  
The system operated on the basis that the importers should only approach one single administrative organ, and failure to meet the ordinary criteria would be the only circumstance under which applications could be refused.  No application w ould be refused for minor documentation errors which 
did not alter basic data.  Such refusal (and the reas on) would always be communicated to the applicant 
in writing, and the Ministry's decision could be challenged before the Administrative Court.   
Non-automatic licenses should be delivered within  30 days (15 days for arsenic, narcotics and 
precursors); in practice the period could be much shorter (about one week).  No deposit or advance 
payment was required.  The validity of the licenses and the cost differed from one Ministry to another.  
Licenses issued by the Ministry of Economy were va lid for one year at a cost of €50, except the 
licence for arms and ammunitions which amounted to €100.  The Ministry of Sustainable 
Development and Tourism charged €5 administrative fee for all licenses rela ted to wastes, €50 for a 
one year licence for endangered and protected speci es of wild flora and fa una, and for substances 
depleting the ozone layer, and €200 for one year  licenses to import radioactive materials.  
The Ministry of Health charged €50 for licenses va lid from one to three months.  In accordance with 
the Decision on Fees in the Procedure of Issue of Authorisation, Certificates and Approvals for 
Manufacturing and Marketing of Medicines (OG MNE Nos. 06/09 and 83/09), the Agency for Medicines and Medical Devices charged €50 for authori zations for precursors, valid from one to three 
months, and 1 per cent of the value of the goods for narcotics.  The period of validity of the licenses 
delivered by the Ministry of Health was shorter due  to the dangerous nature of the products concerned 
(arsenic, narcotics and precursors) and the necessity to  control them more closely.  She added that the 
Ministry of Economy had initiated discussions with th e other relevant State authorities in order to 
harmonize the licensing procedures.  She provided information on the validity of import licenses and 
the products covered in Table 9. 
Table 9:  Import Licenses 
Ministry in Charge Products Concerned Validity 
The Ministry of 
Economy  - Porous aluminium nitrate for explosive (1 tariff item in 
Chapter 31); 
- Polycarbonates (1 tariff item in Chapter 39); 
- Silver, base metals clad with silver, gold, coin (12 tariff 
items in Chapter 71);  
- Machinery for optical discs production (1 tariff item in 
Chapter 84); 1 year  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 Ministry in Charge Products Concerned Validity 
Agency for 
Environment Protection - Uranium and thorium ores and concentrates (4 tariff items 
in Chapter 26); 
- Natural uranium (25 tariff items in Chapter 28); 
- Nuclear reactors (4 tariff items in Chapter 84); 
- Apparatus based on the use of X-rays or of alpha, beta or 
gamma radiations (3 tariff items in Chapter 90); 
- Wastes; 
- Substances damaging the ozone layer;  1 year 
The Ministry of 
Health - Arsenic (1 tariff item in Chapter 28); 
- Pharmaceuticals (46 tariff items in Chapter 30) 
- Solution for artificial tears, contact lens (1 tariff item in 
Chapter 33) 
- Modelling paste (1 tariff item in Chapter 34) 
- Insecticides (4 tariff items in Chapter 38)  
- Plastic products (1 tariff item in Chapter 39) 
- Hygienic or pharmaceutical products, clothing accessories 
(2 tariff items in Chapter 40) 
- Products of gut (1 tariff item in Chapter 42) 
- Napkin liners for babies and similar sanitary articles 
(2 tariff items in Chapter 48) 
- Silk yarn (1 tariff item in Chapter 50) 
- Stockings for varicose veins of synthetic fibres (1 tariff 
item in Chapter 61) 
- Other made up articles, including dress patterns (3 tariff 
items in Chapter 63) 
- Medical, surgical or laboratory sterilizers (1 tariff item in 
Chapter 84) 
- Contact lens (43 tariff items in Chapter 90) 
- Dentists', barbers' or similar chairs (2 tariff items in 
Chapter 94) 
- Narcotics - including derivates and salts (51 tariff items, or 
148 "ex" position products , in Annexe 2); and 
- Precursors (23 tariff items in Annexe 3). From 1 to 3 
months 
108. Some Members noted that Montenegro had passed a Law on Waste Disposal in 2005, 
abolishing an earlier requirement obliging the importer to demonstrate that the particular quality of 
the imported waste was not available in the domestic market.  However, the Law would not enter into 
force until 1 November 2008.  Montenegro was requ ested to explain the reason for the delay, and 
outline the requirements applied to import ed waste in the interim period.   
109. In reply, the representative of Monteneg ro said that Article 8 of the Rulebook on 
Documentation to be Submitted along with Request for Issuance of Import, Export and Transit of 
Wastes (FRY OG No. 69/99) required a statement from the processor that the imported waste did not exist in the domestic market in the necessary qua ntities.  This Rulebook was superseded by the 
Law on Waste Management (OG MNE No. 73/08) a nd the Rulebook on Detailed Contents of the 
Documentation Submitted with the Application for a Permit to Import, Export and Transit of Waste, 
and List of Classifications of Waste (OG MNE No. 73/08).  According to these Laws, importers were 
no longer obliged to demonstrate that the particular  quality of the imported waste was not available in 
the domestic market. 
110. A Member stated that Montenegro had a leg itimate interest in protecting its citizens from 
unsafe products, but that WTO rules made ample provision for technical regulations for such 
protection, rather than the broad application of import licensing procedures burdening trade.  Many of 
the justifications offered by Montenegro for its li censing regime suggested that the concerns should be WT/ACC/CGR/38 
WT/MIN(11)/7 Page 32 
 
 
 addressed through non-discriminatory and transparent TBT or SPS technical regulations.  
The Member requested Montenegro to review its licensing regime and evaluate whether TBT or SPS 
technical regulations would better advance its objectiv es.  In reply, the representative of Montenegro 
said that the licensing regime had been reviewed with  a view to reducing the number of items subject 
to licensing.  However, the review had concluded that no currently applied licenses could be replaced 
by technical requirements or SPS measures.   
111. Concerned about the continued broad scope of Montenegro's licensing regime, some 
Members requested detailed information about the nu mber of import licenses issued by each Ministry 
as well as the total value of imported goods subject to licenses, recalling the extensive obligations to 
provide such information according to Article  3.5(a) of the Agreement on Import Licensing 
Procedures.  These Members also noted that Monten egro was amending the Foreign Trade Law to add 
provisions on automatic and non-automatic license s and that all by-laws deriving from the Foreign 
Trade Law, including the Decision on Control List fo r Export, Import and Transit of Goods, would be 
amended accordingly.  Montenegro had recognized th at the import licenses issued by the Veterinary 
Administration were WTO-inconsiste nt and would be abolished.  A Member failed to understand the 
need for licenses for "precious metals and metals clad with precious metal" and "TV apparatus and 
sound recorders and reproducers".  Montenegro was also asked to explain what environmental issue or provision of Article XX or XXI of the GATT 1994 were involved in requiring the import licence.  
A Member further enquired why importers were requi red to approach different Government agencies 
to obtain an import licence and why import licence fees and validity periods of import licenses varied 
by agency, which appeared to be burdensome for importers.   
112. The representative of Montenegro  provided information on the number of import licenses 
issued by each Ministry as well as the total value of imported goods subject to licenses in document 
WT/ACC/CGR/24/Add.3.  She added that Parlia ment had adopted the Law on Amendments and 
Modifications of the Law on Customs Tariff in Ma rch 2007, as well as amendments to the Foreign 
Trade Law.  The imposition of quantitative restrict ions and licensing requirements for import, export 
and transit was regulated by Section II of the Law on Foreign Trade.  In her view, this Law was in full 
conformity with the provisions of the GATT 1994, including Article XI.  The Decision on Control List for Export, Import and Transit of Goods had entered into force in July 2007 (RM OG No. 45/07).  As part of this work, some of the non-automatic  licenses had been converted into automatic licenses 
and import licenses had been abolished for a numbe r of products, including precious metals and 
metals clad with precious metal; magnetic tape recorders and other sound recording apparatus, 
whether or not incorporating a sound reproducing devi ce; tanks and other armoured fighting vehicles, 
motorized, whether or not fitted with weapons, and parts of such vehicles; warship; some military 
weapons, other than revolvers, pistols and ar ms under heading 9307; and steel and household 
machinery.  In her view, the Decision on Control Li st for Export, Import and Transit of Goods was in 
line with the Agreement on Import Licensing Pr ocedures.  The representative of Montenegro 
reiterated that the Decision was amended each year to align it with the Customs Tariff.  The current 
Decision on Control List for Export and Import of Goods (OG MNE No. 10/11) came into force on 19 February 2011.  The total number of tariff lines s ubject to import licenses was 240, i.e. 2.6 per cent 
of total tariff lines.  She noted that the goods listed in Annexes 2 to 7 of the Decision were subject to 
licensing in accordance with Montenegro's obligations under the Convention on Psychotropic 
Substances, the Uniform Convention on Narcotics Dr ugs, the Vienna Convention on Protection of the 
Ozone Layer, the Montreal Protocol on Substa nces Depleting the Ozone Layer and the Basel 
Convention on Transboundary Movement of  Hazardous Waste and its Disposal.   
113. She added that the Law on Administrative Fees had been amended (OG MNE Nos. 22/08, 
77/08, 03/09, 40/10 and 20/11).  The amendments provided for a uniform licensing fee of €50 
conform to Article VIII of the GATT 1994.  She c onfirmed that the fee applied to licenses for all 
products, regardless of the Ministry to which the impor ter had to apply.  She explained that importers  WT/ACC/CGR/38 
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 were required to approach different agencies because of the specificities of certain goods.  
Responsibility for issuing licenses was entrusted to the authority having expertise in the relevant field.  
The list of licensing authorities was contained in th e Decision on Control List for Export, Import and 
Transit of Goods and was publicly available.  Sh e did not consider this system burdensome.  
She confirmed that all import licence requirements on fertilizer and pesticides had been abolished and 
replaced by the system of activity licenses.  Sh e added that Montenegro had discontinued the 
licensing regime administered by the Veterinary Ad ministration.  In her view, none of the remaining 
restrictions violated WTO rules. 
114. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would eliminate and would not introduce, re-introdu ce or apply quantitative restrictions on imports or 
other non-tariff measures such as licensing, quotas, ba ns, permits, prior authorization requirements, 
and other restrictions having equivalent effect, th at could not be justified under the provisions of the 
WTO Agreement, including measures listed in Tables 8 and 9.  She further confirmed that the legal authority of Montenegro to suspend imports and exports or to apply licensing or other requirements 
that could be used to suspend, ban, or otherwise restrict the quantity of trade would be applied from 
the date of accession in conformity with the requirements of the WTO Agreement, including Articles XI, XII, XIII, XIX, XX, and XXI of the GATT 1994, and the Agreements on Agriculture, 
Sanitary and Phytosanitary Measures, Import Li censing Procedures, Safeguards and Technical 
Barriers to Trade.  She also confirmed that any existing or future import licence fee would be consistent with Article VIII of the GATT 1994.  The Working Party took note of these commitments. 
- Customs valuation 
115. The representative of Montenegro said that th e Law on Ratification of the WTO Agreement 
on Implementation of Article VII of the GATT and its associated Protocol (FRY OG No. 01/82 - international Agreements), the Customs Law (RM OG Nos. 07/02, 38/02, 72/02, 21/03, 29/05, 66/06; 
OG MNE No. 21/08) (Articles 29 to 45 - reproduced  in document WT/ACC/CGR/3/Add.1, Annex 4), 
and the Decree on Implementation of the Customs Law (RM OG No.15/03 and 81/06; OG MNE 
No. 38/08) constituted the principal basis for custom s valuation rules and procedures in Montenegro.  
Montenegro submitted a completed questionnaire on the implementation and administration of the 
Customs Valuation Agreement in doc ument WT/ACC/CGR/7, Annex 3.   
116. Having reviewed the legislation and the qu estionnaire, some Members sought further 
information regarding the possible conformity of Montenegro's legislation with the WTO Agreement 
on Implementation of Article VII of the Genera l Agreement on Tariffs and Trade 1994, notably:  
(i) the incorporation of the Interpretative Notes to the Agreement; (ii) other legislation addressing the 
transparency, commercial secrets, and right of admi nistrative and judicial appeal provisions of the 
WTO Agreement; (iii) any facility allowing importers  to post a guarantee for duties owed to Customs 
in the form of a surety, bond, or other such instrument to clear th eir goods from Customs when a final 
determination on the duties owed was being delayed;  and (iv) an explanation for how Article 36, 
paragraph 2 of the Customs Law conformed with Article 6.2 of the Agreement.  A Member was also concerned that Article 74 of the Decree on Impl ementation of the Customs Law would not permit 
accurate implementation of the Interpretative Note to  paragraph 1(b) of Article 1 of the Agreement, 
which applied to all transactions, whereas the sc ope of Article 74 appeared to be limited to 
transactions between business partners.   
117. The representative of Montenegro replied that th e majority of the Interpretative Notes to the 
Agreement had been included in the Customs Law or  in the Decree on Implementation.  The Customs 
Law and its implementing regulations had been  amended in October 2006 to include the few 
remaining Interpretative Notes.  The amendments ha d come into force on 1 January 2007.  Article 8, 
paragraph 3 of the Customs Law provided for the right  of appeal of first instance decisions of the WT/ACC/CGR/38 
WT/MIN(11)/7 Page 34 
 
 
 customs authorities.  The right of appeal to an independent judicial authority without penalty was 
provided generally in the Law on Administrative Disputes (RM OG No. 60/03), whereby any final administrative decision could be appealed to the Administrative Court or - as the case might be - to 
the Supreme Court of Montenegro.  Transparency, commercial secrets and the right of administrative 
and judicial appeal was not addressed in other legi slation.  Legislation governing trade secrets had 
been adopted in December 2007 (OG MNE No. 96/ 07).  On item (iii), Montenegro had no specific 
provision on this issue, but Articles 189 to 200 of the Customs Law and the Implementing Regulations for the Customs Law (RM OG Nos. 15/03 and 81/06) regulated generally the issuance of 
guarantees for customs debt, and could be applicable  to these circumstances.  Pursuant to these 
provisions, the customs authority could request im porters to provide a guarantee to secure the 
payment of a single customs debt, including interest s accrued or that may accrue (single guarantee), or 
the payment of several customs debts or of a debt that may be incurred within a certain period of time 
(joint guarantee).  The amount of the guarantee wa s set by the customs authority.  Guarantees could 
take the form of a cash deposit (in Euro) on the account of the Customs Administration or customs 
office, or of a bank guarantee.  The validity of a ba nk guarantee could not be inferior to three months 
or to the period during which the debt could be incu rred plus 60 days.  If the term of the guarantee had 
expired and the debt had not been paid, in whole or in part, or if a debt could still be incurred, a new 
guarantee covering the debts secured by the previous guarantee had to be provided.  When a joint 
guarantee was presented, the Customs Administration confirmed receipt of the guarantee, entered the filing number of the guarantee into customs documents and promptly informed all the customs 
authorities of the guarantee received.  A single guara ntee simply had to be presented to the customs 
office.  Guarantees were returned after payment of the debt, once it had been determined that no 
further debt could be incurred.  She added that  Article 42 of the Customs Law and Article 126, 
paragraphs 2 and 3 of its impl ementing regulation enabled importe rs to withdraw their goods from 
customs with provision of a surety in the form  of a cash deposit or a bank guarantee covering the 
payment of customs duties for which the goods could be liable.  She confirmed that the prohibition 
under Article 36, paragraph 2 of the Customs Law a pplied only to non-residents.  Article 74 of the 
Decree had been amended by the Decree on the Ame ndments to the Decree on Implementation of the 
Customs Law (RM OG No. 81/06) to refer to the appr opriate provision (Article 30, paragraph 1) of 
the Customs Law.  In her opinion, the new Decr ee ensured the full comp liance of Montenegro's 
customs valuation legislation with WTO requirements.   
118. In response to a Member who invited Montenegro to adopt paragraph 2 of the Decision on 
Valuation of Carrier Media Bearing Software for Data Processing Equipment (Decision 4.1) and the 
Decision of 26 April 1984 on the Treatment of Inte rest Charges in the Customs Value of Imported 
Goods (Decision 3.1), the representative of Montenegro  noted that the provisio ns of paragraph 2 of 
Decision 4.1 had been included in Article 43.1 of the Customs Law, and that the provisions of 
Decision 3.1 had been included in Article 39.3 of the Customs Law.   
119. The representative of Montenegro confirmed that , as from the date of accession, Montenegro 
would apply the WTO provisions concerning custom s valuation, including the WTO Agreement on 
the Implementation of Article VII of the GATT 1994 and Annex I (Interpretative Note) thereto, the 
Decision of 26 April 1984 on the Treatment of Inte rest Charges in the Customs Value of Imported 
Goods (Decision 3.1), and paragraph 2 of the D ecision on Valuation of Carrier Media Bearing 
Software for Data Processing Equipment (Decision 4. 1), providing that valuation of software was 
based on the value of the media.  In addition, she co nfirmed that Montenegro would ensure that in the 
event that its customs service could not determin e the proper customs value in a timely manner or 
disputed the transaction value offered, it would re lease the goods subject to the posting of a bond or 
other security for the maximum amount of the custom s duties that could be owed, as provided for in 
the Agreement.  She further confirmed that Montenegro would not use any form of reference or 
minimum prices or fixed valuation schedules for th e valuation of imports a nd that all methods of 
valuation used would be in conformity with those provided for in the WTO Agreement on the  WT/ACC/CGR/38 
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 Implementation of Article VII of the GATT 1994.  The Working Party took note of these 
commitments. 
- Rules of origin 
120. The representative of Montenegro said that Articles 23 to 28 of the Customs Law 
(RM OG Nos. 07/02, 38/02, 72/02, 21/03, 29/05 and 66/06; OG MNE No. 21/08) and Articles 13 to 
67 of the Decree on Implementation of Customs Law (RM OG Nos. 15/03 and 81/06; OG MNE No. 38/08) laid down detailed provisions on rules of  origin.  The Law defined non-preferential rules 
of origin for the purposes of applying the Customs Tariff (except for goods entering under free trade 
Agreements), to apply measures est ablished by other regulations gove rning trade in goods, and for the 
issuance of certificates of origin.  Goods were evaluated according to the "wholly obtained" criterion 
or - for goods produced in more than one count ry - where the imports had undergone the last 
substantial, economically justifiable processing.  Simp le assembly of parts; treatment to preserve the 
characteristics of products during transportation a nd storage; labelling and marking; separation, 
sorting, sifting, rinsing or cutting; changes in quantity; and packing and re packaging of goods would 
not be considered substantial, economically justifiable processing.  Any processing undertaken for the 
sole purpose of circumventing the provisions of th e Customs Law would not be deemed authentic.   
121. Preferential rules of origin were stipulated in Montenegro's free trade Agreements.  The origin 
was proven by the presentation of an EUR1 certificate of origin or an exporter's declaration.  The Customs Administration issued certificates of preferential origin, whereas non-preferential certificates of origin for domestic goods were issu ed by the Chamber of Commerce.  She confirmed 
that the European Union was treated as one entity for the determination of origin.  The representative 
of Montenegro further stated that the new paragra ph in Article 34 of the Decree on Implementation of 
Customs Law (OG MNE No. 38/08) stipulated that the preferential status for the goods re-exported from the customs territory of Montenegro and the goo ds returned to the customs territory was proven 
by a movement certificate, which was issued by the customs authority during the re-export procedure.  
122. Asked how the provisions of Article 2(h) and paragraph 3(d) of Annex II of the 
WTO Agreement on Rules of Origin were impl emented in Montenegro's legislation, the 
representative of Montenegro pointed to Article 12 of the Customs Law and Articles 8 and 10 of the 
Decree on Implementation of the Custom Law.  The customs authority issued binding information on 
the classification and origin of goods within 60 da ys of receipt of a request (the deadline for 
classification determinations was three months).  The assessments remained valid for two years 
provided the facts and conditions, including the rul es of origin, under which they had been made 
remained comparable.  She subsequently noted th at the implementing Decree had been amended to 
extend the period of validity of assessments to three years (RM OG No. 81/06).   
123. The representative of Montenegro confirmed th at, from the date of accession, Montenegro's 
preferential and non-preferential rules of origin, a nd the implementation thereof, would comply with 
the WTO Agreement on Rules of Origin.  She further confirmed that, to this end, Montenegro would 
implement Article 2(h) and Annex II,  paragraph 3(d) of the WTO Agreem ent on Rules of Origin in its 
domestic legislation and that, accordingly, with resp ect to non-preferential and preferential rules of 
origin, the relevant Montenegrin authorities would pr ovide, upon request of an exporter, importer or 
any person with a justifiable cause, an assessment of  the origin of the import under the terms outlined 
in those provisions.  The Working Party took note of these commitments. WT/ACC/CGR/38 
WT/MIN(11)/7 Page 36 
 
 
 - Other customs formalities 
124. The representative of Montenegro said that the processing of imports by Customs required the 
submission of a customs declaration; the invoi ce; the Bill of Lading; certificates of fact, 
force majeure , or end user; and - as necessary - certificates of origin, certificates of conformity; 
veterinary, phytosanitary, health or quality certifi cates; approvals; or licenses.  In response to a 
specific question, she confirmed that Montenegro  did not require the authentication of import 
documentation by its consular offices or by othe r institutions in the country of export.   
- Preshipment inspection 
125. The representative of Montenegro said that G overnment-mandated preshipment inspection of 
the nature foreseen in the WTO Agreement on Preshipment Inspection was not applied in 
Montenegro.   
126. The representative of Montenegro confirmed th at if preshipment inspection requirements 
were to be introduced in the future, such require ments would be temporary, and would comply with 
the requirements of the WTO Agreement on Preshi pment Inspection and other WTO Agreements.  
Montenegro would ensure that pre-shipment insp ection enterprises operating on its behalf complied 
with the provisions of the WTO Agreement, in cluding the WTO Agreements on Import Licensing 
Procedures, Customs Valuation, Technical Barrier s to Trade, the Application of Sanitary and 
Phytosanitary Measures, Agriculture, and Rules of Origin and the GATT 1994.  She further confirmed 
that Montenegro would ensure that charges and fees of pre-shipment enterprises would be consistent 
with Article VIII of the GATT 1994 and Monteneg ro would ensure that the requirements and 
procedures of such entities would comply with the transparency and confidentiality requirements of 
the WTO Agreement, including Article X of th e GATT 1994.  Decisions by such firms could be 
appealed by importers in the same way and throu gh the same procedures as administrative decisions 
taken by Montenegro.  The Working Party took note of these commitments. 
- Anti-dumping, countervailing duties, safeguard regimes 
127. The representative of Montenegro said that anti-dumping and countervailing measures could 
be imposed on imports pursuant to the Foreign Trade Law (Article 36) and the Decree for 
Implementation of the Foreign Trade Law.  The Mi nistry of Economy would conduct investigations 
based on written requests filed by or on behalf of the domestic industry (i.e. producers collectively accounting for more than 25 per cent of the nati onal output of a like product).  A notification 
announcing the initiation of proceedings would be published in the Official Gazette.  
The investigation should be concluded within one year  of the initiation.  If the Ministry confirmed the 
existence of dumping or subsidization, and th e resulting injury to the domestic industry, a 
recommendation would be made to the Govern ment, which decided on the imposition of  
anti-dumping or countervailing duty.  Decisions to levy anti-dumping or countervailing duty - 
whether provisionally or definitely - would be published in the Official Gazette.  Provisional  
anti-dumping duty could be levied for maximum si x months; for provisional countervailing duties the 
period could not exceed four months.  Subject to review by the Ministry, anti-dumping or 
countervailing duties remained in force as long as n ecessary to remedy the injury, but not for more 
than four years.  She considered the anti-dumpi ng and countervailing provisions of the Foreign Trade 
Law and the Decree for Implementation of the Fore ign Trade Law to be fully compliant with the 
WTO Agreement on Implementation of Article VI of the GATT 1994 and the WTO Agreement on 
Subsidies and Countervailing Measures.   
128. The representative of Montenegro said that he r Government could impose safeguard measures 
on imports based on the recommendation of the Ministry of Economy.  The Ministry's  WT/ACC/CGR/38 
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 recommendation would be the result of an inves tigation carried out as required under the Foreign 
Trade Law (Articles 44 to 50) and the Decree for Implementation of the Foreign Trade Law (Articles 38 to 42).  The Ministry's decision to initi ate an investigation was published in the Official 
Gazette.  A safeguard measure could be in the fo rm of a quantitative restriction or a price-based 
measure.  Her Government could introduce a provisi onal safeguard measure - in the form of a tariff 
increase - for a period not exceeding 200 days if evid ence showed clearly that the increased imports 
were causing or threatening to cause serious injury to the domestic industry, and a delay would cause 
injury difficult to repair.  Safeguard measures re mained in force as long as necessary to remedy an 
injury, but not for more than four years (or a tota l of eight years in exceptional circumstances).  
She considered the provisions on safeguard measures  in the Foreign Trade Law and the Decree for 
Implementation of the Foreign Trade Law to be full y compliant with the Agreement on Safeguards.   
129. The representative of Montenegro considered  Montenegro's trade remedy legislation 
WTO compliant, but confirmed that Montenegro w ould not apply any anti-dumping, countervailing or 
safeguard measure to imports from WTO Members until it had notified and im plemented appropriate 
laws in conformity with the provisions of the WT O Agreements on the Implementation of Article VI 
of the GATT 1994, Subsidies and Countervailing M easures, and Safeguards.  She further confirmed 
that Montenegro would ensure that such legislati on would be in full conformity with the relevant 
WTO provisions, including Articles VI and XIX of the GATT 1994 and the WTO Agreement on the Implementation of Article VI, the WTO Agreemen t on Subsidies and Countervailing Measures and 
the WTO Agreement on Safeguards.  After such le gislation was implemented, Montenegro would 
only apply any antidumping duties, countervailing du ties and safeguard measures in full conformity 
with the relevant WTO provisions.  The Work ing Party took note of these commitments.   
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
130. The representative of Montenegro said that indi viduals and enterprises wi shing to engage in 
exporting were obliged to register pursuant to th e Foreign Trade Law (RM OG Nos. 28/04 and 37/07).  
The registration requirements for exporters were identical to the requirements for importers 
(see "Trading rights").  Exporters of goods subject  to activity licensing were subject to additional 
registration requirements pursuant to the La w on Prevention of Narcotic Drugs Abusing 
(OG MNE No. 28/11), the Law on Chemicals (RM OG No. 11/07), the Law on Medicines 
(RM OG No. 80/04; OG MNE Nos. 18/08 and 34/10) and the Law on Tobacco (OG MNE No. 48/08).  
131. The representative of Montenegro said that no e xport duties were being applied at present.  
Montenegro had applied an export duty of 15 per cent on ferrous metals and scrap steel, and 
20 per cent on raw hides.  The export duty on ferrous  metals had been abolished in 2005 according to 
the Decision on Abolishment of Export Duties for Ferrous Metals (RM OG No . 25/05), and the export 
duties on scrap steel and raw hides had been elimin ated with the entry into force of the Law on 
Customs Tariff in January 2006.   
132. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would not apply or reintroduce any export duty.  The Working Party took note of this commitment. 
- Export restrictions 
133. The representative of Montenegro said that M ontenegro did not prohibit the export of any 
goods.  Article 15 of the Foreign Trade Law allo wed her Government to introduce quantitative 
restrictions on exports in case of critical shortag es of essential products, to relieve the consequences WT/ACC/CGR/38 
WT/MIN(11)/7 Page 38 
 
 
 of such shortages, or in order to protect an exha ustible natural resource - applied simultaneously with 
restrictions on domestic production or  consumption.  The Ministry of Economy would be in charge of 
quota allocations.  She stressed that the Forei gn Trade Law stipulated that quantitative export 
restrictions could be applied only in strict WTO-co mpatible circumstances, that no quantitative export 
restrictions were being applied at present, and th at no such restrictions we re being contemplated.  
Moreover, Montenegro did not resort to any othe r export measures such as minimum export prices, 
voluntary export restrictions, or orderly marketing arrangements.   
134. Export licensing could be applied pursuant to  Article 6 of the Foreign Trade Law.  
The Decision on Control List for Export, Import and Transit of Goods (RM OG No. 45/07) 
established a regime for export licensing comparable to  that applicable to imports.  The representative 
of Montenegro further stated that the current D ecision on Control List for Export and Import of Goods 
(OG MNE No. 10/11) listed 163 tariff lines subject to e xport licensing, i.e. 1.7 per cent of total tariff 
lines.  Whereas no licenses were required for imports , the Ministry of Culture licenced exports of 
artefacts of artistic, cultural, historical and archaeol ogical value, notably for:  (i) paintings, drawings 
and pastels; (ii) original engravings, prints a nd lithographs; (iii) original sculptures and statues; 
(iv) postage or revenue stamps, st amp-postmarks, first day covers, pos tal stationery (stamped paper); 
(v) collections and collectors' items of zoological , botanical, mineralogical, anatomical, historical, 
archaeological, paleontological, ethnographic or numi smatic interest; and (vi) antiques of an age 
exceeding 100 years.  In order to get a licence, th e applicant should submit a confirmation from the 
Institution for Protection of Cultural Monument; if applicable, an export conformity statement from 
the copyright holder; a photograph of the artwork be ing exported; and the receipt for payment of the 
€10 administrative fee.  Montenegro was asked to explain why it required a non-automatic licence for 
the export of ferrous and nonferrous scrap, desi gnated as "non-hazardous waste" and what criteria 
were applied for granting or denying the licence.  The representative of Montenegro stated that 
according to the Law on Waste Management, licen ses for export of non-hazardous waste were not 
required.  She provided a list of goods  subject to export licenses in Table 10. 
135. The representative of Montenegro confirmed that from the date of accession, any export 
licensing requirements and other export restrictions  and control requirements with similar effect 
applied by Montenegro would either be eliminated  or applied in conformity with WTO provisions, 
including those contained in Articles XI, XVII, XX  and XXI of the GATT 1994.  In this regard, the 
requirement for a non-automatic licence for the expo rtation of ferrous and nonferrous scrap metal 
would be abolished as from the date of accession.  She also confirmed that any existing or future 
export licence fee would be consistent with Article  VIII of the GATT 1994.  The Working Party took 
note of these commitments. 
Table 10:  Goods Subject to Export Licenses   
Responsible Authority Goods Subject to Export Licenses 
The Ministry of 
Economy - Polycarbonates (1 tariff item in Chapter 39);  
- Silver, base metals clad with s ilver, gold, coin (13 tariff items in 
Chapter 71);  
- Machinery for optical discs production (1 tariff item in Chapter 84); and - Optical media (10 tariff items in Chapter 85). 
Agency for 
Environment 
Protection - Uranium and thorium ores and concentrates (4 tariff items in Chapter 26); 
- Natural uranium (25 tariff items in Chapter 28); 
- Nuclear reactors (4 tariff items in Chapter 84); 
- Apparatus based on the use of X-rays or of alpha, beta or gamma radiations 
(8 tariff items in Chapter 90); 
- Wastes; and 
- Substances damaging the ozone layer.  WT/ACC/CGR/38 
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 Responsible Authority Goods Subject to Export Licenses 
The Ministry of 
Health, Agency for Medicines and 
Medical Devices - Arsenic (1 tariff item in Chapter 28); 
- Pharmaceuticals (15 tariff item in Chapter 30) ; 
- Narcotics - including derivates and salts (51 tariff items, or  148 "ex" 
position products in Chapter 12, 13 and 29); and 
- Precursors (23 tariff items in Chapter 28 and 29). 
The Ministry of Culture - Works of art, collectors pieces and antiques (7 tariff items in Chapter 97). 
- Export subsidies 
136. The representative of Montenegro said that M ontenegro did not provide any subsidies or 
Government benefits to promote exports.  In r esponse to a specific questi on, she confirmed that 
Montenegro did not maintain prohibited subsid ies within the meaning of Article 3 of the 
WTO Agreement on Subsidies and Countervailing M easures, including benefits contingent upon 
export performance or local content, and that it would not introduce such prohibited subsidies in the future.   
137. Asked to explain the conformity of Monteneg ro's duty drawback scheme with item (i) of 
Annex I and Annexes II and III of the WTO Agre ement on Subsidies and Countervailing Measures, 
the representative of Montenegro said that Artic les 128 to 132 of the Customs Law allowed duty 
drawback on imported goods not released for free ci rculation and subsequen tly exported.  The duty 
drawback was not in excess of the amount of the orig inal charges on the imported goods.  In her view, 
the duty drawback scheme conformed to the WT O Agreement on Subsidies and Countervailing 
Measures, including its Annexes.  Drawback of cu stoms duty could be requested no later than three 
years from the date when the customs debt had been incurred.  She confirmed that the amount 
remitted under the drawback scheme could under no circumstances exceed the duties paid on the 
imported products. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS - Industrial policy, including subsidies 
138. The representative of Montenegro submitted a draf t notification pursuant to Article XVI:1 of 
the GATT 1994 and Article 25 of the WTO Agreem ent on Subsidies and Countervailing Measures, 
covering the years 2004 and 2005, in doc ument WT/ACC/CGR/15; for 2006 in document 
WT/ACC/CGR/15/Add.1; and for 2007 in documen t WT/ACC/CGR/15/Add.2.  Support was made 
available through the Law on Budget.  During the 2004-2006 period, the Ministry of Economy had 
administered a loan programme - Programme for Re structuring of Companies - to prepare industrial 
enterprises undergoing privatization for restructurin g and modernization.  The duration of the loans 
was three years with a grace period of one year, a nd the annual rate of interest was 2 per cent.  
Eligibility criteria included the company's export potential, its ability for restructuring, its human 
resources potential and whether the company was e ligible for privatization within 12 months.  
The credit was aimed at strengthening the workin g capital of the enterprises, covering the costs 
related to worker redundancies a nd reconstruction of facilities, de fining the optimal organizational 
structure and number of employees, improving th e companies' business competitiveness, and assisting 
the companies in their restructuring to enable them  to operate in an open market economy.  As the 
programme was linked to the privatization of these enterprises, the scheme would be terminated once 
the privatizations had been completed.  The es timated value of the subsidy had amounted to 
€2.65 million in 2004, €1.76 million in 2005, and €1 .26 million in 2006.  The subsidy amounted to 
€2.26 million in 2008, €1.96 million in 2009 and €1.47 million in 2010.   The Restructuring Program, WT/ACC/CGR/38 
WT/MIN(11)/7 Page 40 
 
 
 which included "Export potential" as the eligib ility factor, was implemented from 2004 to 2006.  
The Program had been terminated in 2006 and would never be applied again.    
139. In addition, the Ministry of Finance had provided subsidized credit worth €2.34 million 
in 2004, and €3.07 million in 2006, to the enterp rise "Obod" - a manufacturer of electric machinery 
and equipment in which the State owned 51.8 pe r cent of the capital.  A public tender for the 
privatization of this enterprise was being prep ared.  Support provided aimed at preserving the 
company's assets and at preparing it for priva tization, and included subsidized credit for the 
modernization of machinery and the restorati on of two manufacturing facilities, including the 
payment of workers involved in these activities.  The loans were granted at an annual rate 
of 2 per cent and had to be repaid after privatiza tion.  Obod was the sole recipient of these loans.  
In her view, these loans did not affect competition as  Obod had not been operational in recent years.  
140. She added that the steel producer "Zeljezara" had received grants totalling €0.64 million from 
the Ministry of Economy in 2005.  The grants had compensated the steel producer for the difference between the market price and the contract price for electricity supplied by "Elektroprivreda".  
The Agreement between her Government and the former majority owner of "Zeljezara" had been 
terminated at the end of 2005, and no subsidy had been paid in 2006.  
141. Finally, grants worth €0.55 million had been provided to companies of various sectors 
in 2006 to promote competitiveness.  The programme aimed at improving business practices and transfers of managerial know-how to enable the co mpanies concerned to operate more effectively in 
an open market economy.  Support was provided to enterprises with a positive business outlook and a 
positive approach towards improvement of manageme nt and business practices.  She noted that the 
amounts granted were relatively small and could not affect the performance of the company 
substantially.   
142. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would not grant or maintain, at any level of G overnment, export or import-substitution subsidies, 
within the meaning of Article 3.1(a) and 3.1(b) of  the SCM Agreement.  She further confirmed that, 
by the date of accession, Montenegro would prov ide a subsidy notification, in accordance with 
Article 25 of the SCM Agreement, to the Comm ittee on Subsidies and Countervailing Measures.  
The Working Party took no te of these commitments. 
- Technical barriers to trade,  standards and certification 
143. The representative of Montenegro recalled that  the former Socialist Federal Republic of 
Yugoslavia had been a signatory to the TBT C ode under the GATT 1947 and a number of principles 
of that Agreement.  The subsequent WTO Agr eement on Technical Barriers to Trade had been 
incorporated in the legislation of the State Union of Serbia and Montenegro, and under the 
Constitutional Charter of the State Union, legisla tion passed at the Union level had been directly 
applicable in Montenegro.  Thus, standards, technical regulations and conformity assessment 
procedures had been adopted at the Union level pr ior to Montenegro's independence, the key legal 
documents being the Law on Standardization and its two relevant decrees, the Decree on the 
Procedure for the Elaboration and Enactment of T echnical Regulations and for Keeping the Registry 
of these Regulations, and the FRY Decree on the Procedure for the Elaboration, Adoption, and 
Enactment of Yugoslav Standards.  The Ministry of Economy had been the Ministry responsible for 
the coordination of activities related to standards and technical regulations in Montenegro, whereas 
the Standards Institution of Serbia and Montenegro - a full member of ISO and IEC - reporting to the 
Union Ministry of Internal Economic Relations, ha d been in charge of implementing the Law on 
Standardization and adopting standards in Serbia and Montenegro.  The State Union of Serbia and 
Montenegro had been a signatory to a number of international Agreements on mutual recognition of  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 certification and test results for specific produc ts, and the Accreditation Body of Serbia and 
Montenegro had recognized certificates and test re ports on the basis of bilateral and multilateral 
Agreements.   
144. Following the independence of Montenegro on 3 June 2006, Montenegro had become fully 
responsible for all areas, including TBT, formerly  within the responsibilities of the State Union.  
Montenegro's Parliament had adopted a Resolution of  Parliament on 3 June 2006 whereby all former 
State Union laws would continue to be effective a nd enforced in Montenegro as national laws.  In the 
TBT area, the Resolution covered four key laws adop ted at the State Union level in 2005, namely the 
Law on Standardization (SM OG No. 44/05); the Law on Accreditation (SM OG No. 44/05); the Law 
on Technical Requirements for Products and Conf ormity Assessment of Products with Such 
Requirements (SM OG No. 44/05); and, the Law on Me trology (SM OG No. 44/05).  In addition, four 
regulations had been adopted in 2006, i. e. the Decree on Legal Measurement Units 
(SM OG No. 10/06); the Decree on Manner of Author izing Conformity Assessment Bodies, Register 
of Authorized Conformity Assessment Bodies, Records on Certificates of Conformity, Conformity 
Marks and Conformity Assessment Bodies, and the C onditions for Applying Technical Regulations of 
Other Countries (SM OG No. 22/06); the Decree on Manner and Procedures of Conformity Assessment (SM OG No. 22/06); and, the Decree on  Manner of Preparing and Adopting Technical 
Regulations and Register of Such Regulations (SM OG No. 17/06).  The Ministry of Economy of the 
Republic of Montenegro was in charge of implemen ting these laws and regulations.  The Ministry had 
established a working group to prepare all necessary  by-laws for the four laws and to establish all 
necessary institutions in charge of TBT matters.  All above-mentioned laws had been replaced by the 
following: the Law on Technical Requirement for Pr oducts and Conformity Assessment of Products 
with Prescribed Requirements (OG MNE No. 14/08), the Law on Standardization (OG MNE No. 13/08), the Law on Metrology (OG MNE No. 79/08), the Law on Accreditation (OG MNE No. 54/09) and the Law on General Product Safety (OG MNE No. 48/08).  According to the Law on 
Technical Requirement for Products and Confor mity Assessment of Products with Prescribed 
Requirements (OG MNE No. 14/08), Montenegro adopt ed four by-laws, as follows:  the Decree on 
the Notification Procedure in the Area of Tec hnical Regulations, Standards and Procedures for 
Conformity Assessment (OG MNE No. 55/08); the Decree on the Method for Preparation and 
Adoption of Technical Regulations and Technical  Specifications and Register of Technical 
Regulations (OG MNE No. 55/08); the Decree on the Method and Procedures for Assessment of 
Product Conformity against Set Requirements (OG MNE No. 71/08); and the Decree on the 
Conditions for the Application of Technical Regul ations of Other States and Records of Foreign 
Conformity Certificates (OG MNE No. 74/08).  According to the Law on Metrology (OG MNE 
No. 79/08), several by-laws had been adopted in the last three years.  These by-laws related to the use 
of SI system in Montenegro (legal measurement units), verification of measuring instruments, as well 
as authorisation of person for verification of me asuring instruments.  A new Montenegrin Law on 
Accreditation (OG MNE No. 54/09) was adopted in July 2009.  The Law incorporated basic accreditation principles and requirements recognized at the international and regional level.  In line 
with this Law:  (i) the Accreditation Body of Montenegro (ATCG), an independent and non-profit 
organization, operated accreditation as a public author ity activity with formal recognition by the State 
of Montenegro; (ii) the ATCG had clearly disti nguished tasks and responsibilities from other national 
authorities; (iii) the ATCG did not own shares, or ot herwise had any financial or managerial interests 
in the conformity assessment bodies; and, (iv) th e ATCG was not competing with other national 
accreditation bodies, etc.  The ATCG was an asso ciate member of the International Laboratory 
Accreditation Cooperation (ILAC) since April 2009; a nd the Contract of Co-operation Signatory with 
European co-operation for Accreditation (EA) since November 2008.  It was expected that the ATCG 
would become a full member of the EA by the end of November 2011.  Furthermore, it was expected 
that the ATCG would become a full member of th e IAF (International Accreditation Forum) and the 
ILAC during 2012.  The ATCG had signed bilate ral agreements on coop eration with national 
accreditation bodies from neighbouring countries.   WT/ACC/CGR/38 
WT/MIN(11)/7 Page 42 
 
 
 145. The representative of Montenegro presented a checklist of illustrative TBT issues in 
document WT/ACC/CGR/20, a TBT Action Plan in document WT/ACC/CGR/21, and a draft 
statement under Article 15.2 of the WTO TB T Agreement in document WT/ACC/CGR/29.  
According to the checklist and the action plan, a Department for Quality Infrastructure had been 
established within the Ministry.  The Ministry had also established a Bureau of Metrology, and the 
Institute for Standardization of Montenegro  had been set up by Government Decision on 
29 March 2007.  A Decision on the Establishment of the Accreditation Body had been adopted on 
29 March 2007, and the Acting Director of th e Body had been appointed on 10 May 2007.  
The Accreditation Body was an independent Body op erating in accordance with the provisions of the 
WTO TBT Agreement and ISO 17011.  Montenegro's Accreditation Body was now fully operational.  
A Register of Technical Regulations would be main tained within the Ministry of Economy, while the 
Institute for Standardization would main tain a Register of Standards.   
146. Some Members noted that Montenegro required certificates of conformity for a substantial 
number of imported items pursuant to the Decision on Control List for Export and Import of Goods 
(RM OG No. 44/04), and that the Decision also listed 53 categories of goods subject to import quality 
control (see documents WT/ACC/CGR/3/Add.1,  Annex 5 and WT/ACC/CGR/7, Annex 4).  
As Montenegro had decided to abolish the Law on Quality Control of Agricultural and Food Products 
in Foreign Trade (FRY OG Nos. 12/95, 28/96 and 59 /98) and its by-laws, these Members asked what 
quality controls would remain, on what legal basis, and which steps Montenegro would take to review 
these controls to ensure they were appropriate  and complied with the WTO TBT Agreement.   
147. The representative of Montenegro replied th at the Law on Quality Control had been 
abolished, and so had quality cont rols applied at the border.  Montenegro currently applied quality 
control at the retail level without any discrimin ation between domestic a nd imported goods.  Market 
inspectors checked the goods displayed on the shel ves and, if in doubt, a sample would be taken and 
submitted for analysis.  A product not fulfilling the prescribed conditions would be removed from 
circulation.  The controls were based on some  40 rule books for food items based on specific 
legislation such as the Veterinary Law and the Plan t Health Protection Law.  The Laws referred to 
international standards and to par ticular international organizations such as the OIE, the IPPC, and the 
Codex Alimentarius.  Quality c ontrols on industrial goods were based on various regulations, 
enumerated in a list of Technical Regulations on Quality of Food and Industrial Products Applied in 
the Republic of Montenegro submitted in Februa ry 2007 (see notice in document WT/ACC/CGR/22).  
No fees were charged for quality cont rol at the retail level.  Monten egro would review all regulations 
governing quality control to ensure compliance wi th the WTO Agreement on Technical Barriers to 
Trade.  A Revised Strategy of Quality Infrastruct ure Development in Montenegro had been adopted 
on 7 June 2007.  The Revised Strategy included an  obligation to harmonize food and environmental 
safety standards, including standards of safety at wo rk, with international standards.  Pursuant to 
Article 28.1 of the Law on Technical Requirement s for Products and Conformity Assessment of 
Products with Prescribed Requirements (OG MNE No. 14/ 08), all technical regulations in force at the 
time of entry into force of the Law would be ma de compliant with this Law by 6 March 2010.  
The review of existing standards and technical re gulations had begun in December 2007.  She did not 
expect this process to be over by the time of Mont enegro's accession.  According to Article 21 of the 
Law on Standardization (OG MNE No. 13/08), manda tory standards which would not have been 
converted into technical regulations at the time  of Montenegro's accession to the WTO would be 
become voluntary.  She further noted that Montenegro was applying all principles of the WTO TBT Agreement and was only using voluntary standards.  
148. 
Asked how Montenegro's regulations could be consistent with Article 2 of the 
WTO TBT Agreement, notably how Montenegro woul d assess the risks leading it to conclude that a 
technical regulation would be required to fulf il a legitimate objective, the representative of 
Montenegro said that the new Law on Technical Requirements for Products and Conformity  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 Assessment of Products with Such Requirements (OG MNE No. 14/08) had been adopted to ensure 
full conformity with the provisions of the WTO TBT Agreement.  She noted that the Law did not stipulate the basis for assessing risks.  The latter was regulated by the Law on General Product Safety, 
which had been adopted by the Parliament on 11 August 2008 (OG MNE No. 48/08).  The Law 
provided the basis for assessing risks not prescribed in any other legislation. 
149. Concerning standardization and the extent to wh ich Montenegro's standards were based on or 
harmonized with international norms, the representa tive of Montenegro said that the Institute for 
Standardization of Montenegro (ISME) had become a member of the International Organization for 
Standardization (ISO) on 1 July 2007 and participated  in the standardization work of 17 ISO technical 
committees and two policy committees (COPOLCO and DEVCO) as an associate member on 
1 January 2009.  ISME obtained a  membership in the International Electrotechnical Commission 
(IEC).  ISME had been an affiliate member of the European Committee for Standardization (CEN) 
since 1 July 2008, as well as an affiliate member  of the European Comm ittee for Electrotechnical 
Standardization (CENELEC) since 1 July 2009.  The former Institute for Standardization of Serbia 
and Montenegro, a joint institution until Montenegro's  independence in May 2006,  had held a total of 
13,746 Serbian-Montenegrin standards in its data base.  According to the Law on Standardization 
(Article 20), those standards could be used as vol untary standards before the adoption of relevant 
Montenegrin standards, provided they were releva nt for Montenegro.  So far, ISME had adopted 
around 6,390 Montenegrin standards and it was expected that by the end of 2011, ISME would adopt around 6,970 Montenegrin standards which were a ll harmonized with international and European 
standards.  These standards were related to mach inery, civil engineering and construction products, 
tourism and related services, motor vehicles, foods tuff, ships and marine technology, air and water 
quality, quality management and quality assurance,  safety of toys, soil quality, environmental 
management, materials for the production of primar y aluminium, fisheries and aquaculture, measuring 
instruments, etc.  For the year 2012, ISME planned to adopt around 1,500 Montenegrin standards.  
ISME intended to adopt the remaining 20,000 Eu ropean standards by the end of the process of 
harmonization with the EU.  During this period, in ternational standards relevant for Montenegro 
would also be adopted as Montenegrin standards.  Montenegrin standards and related documents were 
adopted and issued in accordance with that Law a nd the rules of the Institute for Standardization, 
which was in compliance with the rules of Eu ropean and international organizations for 
standardization, particularly with the Code of  Good Practice for the Preparation, Adoption and 
Application of Standards of the WTO Agreement on T echnical Barriers to Trade.  She noted that the 
Revised Strategy of Quality Infrastructure Devel opment in Montenegro, which had been adopted on 
29 March 2007, included an obligation to withdraw all standards not harmonized with international 
standards.  Among the international standardizat ion organizations relevant to Montenegro she 
considered the International Organization for Standa rdization (ISO), the International Electrotechnical 
Commission (IEC), and the International Telecommu nication Union (ITU), and amongst the relevant 
European institutions she referred to the Euro pean Committee for Standardization (CEN), the 
European Committee for Electrotechnical Sta ndardization (CENELEC), and the European 
Telecommunication Standards Institute (ETSI).  Sh e reiterated that in accordance with the new Law 
on Technical Requirements for Products and Conf ormity Assessment of Products with Such 
Requirements, all mandatory standards which w ould not have been converted into technical 
regulations at the time of Montenegro's accession to the WTO would become voluntary.  Responding 
to a concern that Montenegro could appear to be  giving priority to regional over international 
standards, she said that Montenegro would give  priority to the WTO TBT Agreement, although 
regional Agreements such as CEFTA and th e SAA, both of which referred to the 
WTO TBT Agreement in their preambles and pr ovisions, were also carefully applied.  
150. With regard to transparency, the representative of Monteneg ro said that Montenegro had 
adopted the Decree on the Manner of Preparing and Adopting Technical Regulations and Register of 
such Regulations (OG MNE No. 55/08) and the Decr ee on Notification Procedure in the Field of WT/ACC/CGR/38 
WT/MIN(11)/7 Page 44 
 
 
 Technical Regulations, Standards and Conformity  Assessment Procedures (OG MNE No. 55/08).  
Further regulations in preparation included draft decrees on the manner and procedures for conformity 
assessment and conformity assessment authorities, and on the application of technical regulations of 
other countries and record on conformity verifications  issued abroad.  According to Article 5 of the 
Decree on the Manner of Preparing and Adopting T echnical Regulations and Register of such 
Regulations, draft technical regula tions would be prepared by working groups established by the 
relevant ministries.  The Ministry would submit the drafts to all interested authorities, organizations 
and other legal and natura l persons for comment.  The title and summary of a particular draft technical 
regulation, as well as information on how to obtain th e draft, would be available on the Ministry's 
website, as well as on the website of the Chamber of Commerce.  The Decree on Notification of 
Technical Regulations, Standards and Conform ity Assessment Procedures (OG MNE No. 55/08)
 
appointed the Enquiry Point for technical regulati ons in the Department for Quality Infrastructure 
located in and under the responsibility of the Mini stry of Economy, whereas the Enquiry Point for 
standards was located in the Institute for Standardiza tion.  She added that all technical regulations had 
to be published in the Official Gazette of Montenegro  at least six months before their entry into force 
pursuant to Article 6(3) of the Law on Techni cal Requirements for Products and Conformity 
Assessment of Products with Prescribed Requireme nts.  As for the publication of requirements 
concerning conformity assessment procedures, she noted that the provisions of Article 5.9 of the WTO TBT Agreement had been included in Article 15.2 of the Law on Technical Requirements.  
151. She confirmed that these Enquiry Points had b een established and were fully operational.   
The Enquiry Point for Technical Regulations could be contacted at:  
Ministry of Economy,  
Department for Quality Infrastructure,  Rimski Trg 46,  81 000 Podgorica,  
Montenegro 
 Telephone:  + 382 20 247 119 Fax:  + 382 20 247 133 E-mail:  dragan.vukcevic@mek.gov.me  ana.martinovic@mek.gov.me  
The Enquiry Point for Standards could be contacted at: 
The Institute for Standardization 
The Enquiry Point for Standards Bulevar Svetog Petra Cetinjskog 71,  81 000 Podgorica,  
Montenegro 
 Telephone:  +382 20 225 863 Fax:  +382 20 225 863 E-mail:  isme@cg.yu Website:  http://www.isme.me 
152. Some Members expressed concerns about the sy stem for introducing and enforcing technical 
regulations in Montenegro.  Article 8 of the Decree on the Manner of Preparing and Adoption of 
Technical Regulations and Register of Such Regulations appeared to  go beyond the emergency 
exemptions allowed under Article 2.10 of the WTO TBT Agreement, and the Article made no  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 mention of non-discriminatory consideration of writte n comments.  Article 10 of the Decree did not 
ensure prompt publication of TBT regulations, nor did it require the regulator to provide a 
"reasonable" interval between final publication and en try into force, i.e. not less than six months.  
A Member reminded Montenegro that Article  2.4 of the WTO TBT Agreement required 
WTO Members to use international standards, if they  existed, as the basis for technical regulations.  
This Member also noted that Article 5.2 of the Decision on Establishing the Accreditation Body of 
Montenegro provided for accreditation rules to be based on Serbian, Europ ean and international 
standards.  This Member recalled that the WTO TBT Agreement gave priority to international 
standards over regional and national standards and invited Montenegro to revise its legislation to 
ensure that accreditation rules would be based firs t and foremost on relevant  international standards 
developed in an open, transparent and impartial wa y.  Moreover, Montenegro's laws and decrees did 
not appear to allow it to comply with Articles 6 and 7.1 of the WTO TBT Agreement as Montenegro 
seemed to accept the results of conformity asse ssment procedures conducted by bodies in an 
exporting Member country only if the conformity assessment certificates and marks were issued 
"in accordance with international Agreements binding  on Montenegro" or pursuant to "an Agreement 
on mutual recognition".  The Me mber was also concerned about Montenegro's system for 
Development and Application of St andards and Conformity Assessment Procedures, in particular:  
(i) a lack of priority given to international standa rds thereby creating an inconsistency with assurances 
of "preventing or eliminating unnecessary" obstacles or t echnical barriers to trade; and, (ii) the lack of 
a cost-based fee structure in acco rdance with the WTO TBT Agreemen t.  Montenegro would need to 
change its laws and/or administrative underpinnings to allow it to accede to the obligations contained 
in the WTO TBT Agreement.   
153. The representative of Montenegro replied that Montenegro was aware of all inconsistencies 
and had amended its TBT legislation based on comme nts expressed in the Working Party.  A new 
Law on Technical Requirements for Products and Conf ormity Assessment of Products with Such 
Requirements had been adopted (OG MNE No. 14/08).  The Law was drafted to conform to Article 2 
of the WTO TBT Agreement inter alia  by clarifying the reference to international standards being the 
basis for technical regulations, standards and conf ormity assessment procedures, and by stipulating 
that a notice should be published and a technical regulation notified at an "appropriate stage".  
In addition, the new Law on Standardization (OG MN E No. 13/08) provided that all standards related 
to Montenegro's development priorities would be based on international standards.  Only where no 
adequate international standards existed would European standards be adopted.  She confirmed that 
Montenegro would take into account the key pr inciples referred to in the Decision of the 
WTO TBT Committee (document G/TBT/1/Rev.8) when defining international standards.  
These principles had been included in the Law on Sta ndardization.  This Law  also provided for a 
non-discriminatory and cost based fee structure, cl arified the right of appeal, provided for a 60-day 
comment period, and clearly separated the different conformity assessment procedures  
(Self-Declaration and Third Party Ce rtification).  Concerning conformity assessment, she noted that 
pursuant to Article 24.1 of the Law on Techni cal Requirements for Products and Conformity 
Assessment of Products with Such Requirements, certificates of conformity and conformity marks 
issued abroad would be accepted if it was proven that  the conformity procedures applied provided for 
a level of conformity equivalent to Montenegro's technical regulations.  ILAC attestations would, 
therefore, be recognized in Montenegro.  She confirmed that the new legislation on conformity 
assessment sought to incorporate the provisions of Articles 6.1 and 6.4 of the WTO TBT Agreement.  
Several Decrees had been adopted to regulate the is sue in detail, including the Decree on Notification 
Procedure in the Field of Technical Regulations, Standards and Conformity Assessment Procedures 
(OG MNE No. 55/08); the Decree on Manner of Draf ting and Adoption of Technical Regulations, 
Technical Specifications and the Register of Tec hnical Regulations (OG MNE No. 55/08); the Decree 
on Manner and Procedures of Assessment of Conform ity of Products with Prescribed Requirements 
(OG MNE No. 71/08); and the Decree on Conditions for Application of Technical Regulations of 
Other Countries and Records of Foreign Certificates of Conformity (OG MNE No. 74/08)  WT/ACC/CGR/38 
WT/MIN(11)/7 Page 46 
 
 
 She confirmed that, furthermore, recognition of conformity assessment certificates and marks of 
conformity would be dependent on valid mutual recognition Agreements from the date of accession, 
and that conformity of a product with relevant t echnical regulations could be proved by other means 
than by using standards in acco rdance with Article 9.2 of the Law on Technical Requirements.  
154. The representative of Montenegro confirmed th at, from the date of accession, Montenegro's 
rules of accreditation would be based on relevant in ternational standards de veloped using an open, 
transparent and impartial approach, and that M ontenegro would apply all obligations of the 
WTO Agreement on Technical Barriers to Trade without recourse to any transition period.  
The Working Party took no te of these commitments.  
- Sanitary and phytosanitary measures 
155. The representative of Montenegro said that
 the Veterinary Law (RM OG Nos. 11/04 
and 27/07), the Law on Plant Health Protecti on (RM OG No. 28/06 and 28/11), the Law on Seed 
Material (RM OG No. 28/06), the Law on Planting Material (RM OG No. 28/06), the Law on Health Safety of Food Items and Articles for Common Use (SFRY OG No. 53/91; FRY OG Nos. 24/94, 
28/96 and 37/02; SM OG Nos. 79/05 and 101/05), toge ther with pertinent regulations, constituted the 
basic legal framework for Montenegro's  sanitary and phytosanitary measures.
  A new Law on Food 
Safety had been adopted on 29 November 2007 (OG MNE No. 14/07).  
156. The main Government agencies involved in the administration of Montenegro's SPS measures 
were the Ministry of Agriculture and Rural Devel opment (Veterinary and Phytosanitary Directorate); 
and the Ministry of Health.  Concerning the particip ation of Montenegro in the relevant international 
organizations, she said that Montenegro had become  a member of the World Organisation for Animal 
Health (OIE) on 10 July 2007.  Montenegro was sending representatives to meetings organized by 
Codex Alimentarius and the Inte rnational Plant Protection Convention (IPPC) and became a member 
of the Codex Alimentarius Commission and the IPPC.  However, Montenegro had joined the FAO on 
17 November 2007, which was a precondition fo r membership in the Codex Alimentarius 
Commission and the IPPC.  She noted that Monteneg ro became a member of the Codex Alimentarius 
Commission and the IPPC on 27 July 2009. The Ministry of Agriculture and Rural Development had established the Phytosanitary Directorate as a focal  point for the IPPC, and participated in its 
meetings.  The Institute for Standardization had been designated as Montenegro's enquiry point for 
Codex Alimentarius.  The Institute was in charge of  all activities related to the Codex Alimentarius.  
She noted that the Former Republic of Y ugoslavia had been a member of the FAO; 
Codex Alimentarius standards were th erefore an integral part of Montenegro's current legal system.   
157. The representative of Montenegro presented a Check-list of Illustrative Sanitary and 
Phytosanitary (SPS) Issues in document WT /ACC/CGR/19/Rev.1 and an SPS Action Plan in 
document WT/ACC/CGR/26.  According to the ch ecklist, the principle of necessity in the 
WTO Agreement on the Application of Sanitary and Phytosanitary Measures (WTO SPS Agreement) 
had been incorporated in the Veterinary Law (Artic le 2, item 51(f); Article 34(a), paragraph 1, item 1) 
and in the Law on Plant Health Protection (Article 10, paragraph 2).  This principle had also been 
included in the new Law on Food Safety (Artic le 54, paragraph 2) (OG MNE No. 14/07).  
Montenegro's SPS legislation stipulated that regula tions governing animal and plant health and food 
safety should be based on scientific evidence according to the Veterinary Law (Articles 34(a), paragraph 1; 34(b), paragr aphs 1, 4 and 5)), and the Law on Pl ant Health Protection (Article 10, 
paragraph 3).  Adherence to international standa rds, guidelines and recommendations - to the extent 
possible - was prescribed in the Veterinary Law (Artic les 6, paragraph 2; 34(a), paragraph 1, item 1)), 
and 34(b), paragraphs 2 and 4)) and the Law on Plan t Health Protection (Artic le 10, paragraph 3).  
Provisions had also been included in the Law on F ood Safety (Article 9; Ar ticle 54, paragraph 1; 
Article 55, paragraph 2 and 3).  Ar ticle 2, item 51(n) of the Veterinary Law listed the OIE, the Food  WT/ACC/CGR/38 
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 and Agriculture Organization of the United Nati ons (FAO), the World Health Organization (WHO), 
and the WTO as international organizations releva nt in the area of animal and human health 
protection.   
158. The principle of equivalence had been incorpor ated in the Law on Food Safety (Article 59), 
the Veterinary Law (Articles 33 and 34(f), para graphs 1 and 2), and the Law on Plant Health 
Protection (Article 10, paragraph 6) .  Procedures governing risk, risk analysis, risk assessment, risk 
management and an appropriate level of protection had been established pursuant to Article 2 
(items 51(b) to (f)) of the Veterinary Law, Artic le 10 of the Law on Plant Health Protection, and 
Article 6 (items 6, 7, 8, 9 and 10) and Article s 15, 16, 17 of the Law on Food Safety.  Provisions 
regarding disease free and low disease prevalence ar eas had been included in the Veterinary Law 
(Article 2, items 51g and h), and Article 34b,  paragraph 3 of the Law stipulated that  
veterinary-sanitary measures should be adapted to the veterinary-sanitary characteristics of the region 
from which animals, products, food and raw materials of  animal origin originated or were destined.  
The observance of regional conditions was also laid  down in various provisions of the Law on Plant 
Health Protection (Article 10, paragraph 4; Artic les 14 and 15).  Non-discrim ination provisions had 
been incorporated in the Veterina ry Law (Article 34(a) and (g)), the Law on Plant Health Protection 
(Article 5), and in the Law on Food Safety (Article 54, paragraph 1, item 2).  Border inspection posts 
and the domestic market inspections respected the principle of non-discrimination by applying the laws equally to all operators irrespective of nationality.   
159. Noting that pursuant to Article 33 of the Veteri nary Law, imports of animal origin were 
allowed only from facilities complying with the prescrib ed requirements or registered in the European 
Union, but that "other facilities" could become elig ible, a Member invited Montenegro to describe the 
process through which "other facilities" could gain approval to export to Montenegro.  
The representative of Montenegro replied that in  the event of import from such a facility, the 
Veterinary Administration would conduct risk assess ment taking into account the veterinary-sanitary 
control system and the epizootic situation in the exporting country, as well as the standards and 
recommendations from the OIE and othe r relevant organizations.  Contro ls of the export facility could 
be carried out to determine the existence of vete rinary-sanitary obstacles to importation.  If the 
regulations, standards, and the ve terinary-sanitary control system of the exporting country provided 
for a level of protection at least equivalent to that of Montenegro, the facility would be granted 
approval to export to Montenegro.  In her view , this provision complied with the concept of 
equivalence of the WTO SPS Agreement. 
160. Article 31 of the Veterinary Law prescribed that all shipments containing products of animal 
origin should be accompanied by an international ve terinary certificate issued by the veterinary 
service of the exporting country.  The certificate should contain information determined by the 
Minister of Agriculture in compliance with OIE gu idelines, in general providing information on the 
origin of the goods, their identity, destination, the registration number of the transportation vehicle, 
and the health conditions of the shipment.  Artic le 34(g) of the Veterinary Law prescribed the 
inspection procedures, and Article 60 (paragraph 3) of the Law stipulated that the inspection fees 
should not be higher than the actual cost of the re levant procedure.  Compensation was also addressed 
in Article 55 of the Law on Plant Health Protecti on.  Each inspection service had a rulebook based on 
the particular law it administered, describing in deta il the procedures to be used, including controls 
and sampling methods.  Inspection costs were prescribed  in various decrees, including in the Decision 
on the Level of Compensation for Veterinary-Sanitary  Control in the Trade Across the Border of the 
Republic of Montenegro (RM OG No. 50/05).  Simple testing was performed at the border, for more 
elaborate tests samples were sent for laboratory anal ysis.  Montenegro had three laboratories located 
in Podgorica, each performing separate types of testing - the Institute for Public Health of 
Montenegro, the Centre for Ecotoxicology Research of Montenegro, and the Specialized Veterinary WT/ACC/CGR/38 
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 Laboratory.  About 10 per cent of all imported ship ments of animal origin had been subject to 
laboratory control in 2005.  
161. Agricultural and forest plants and products c ould only be imported through designated border 
crossings.  Certified seeds and seedling material were subject to phytosanitary examinations during 
the vegetation period by institutions authorized by the Phytosanitary Directorate, and by laboratories 
testing to confirm that the seeds or planting materi als were free of pests.  Authorized inspectors 
carried out visual inspection, and samples could be taken to determine the presence of quarantine 
pests.  Imported plants or plant products containi ng quarantine pests would be returned or destroyed 
in Agreement with the importer.   
162. Labelling and packaging of food products were regulated by the Rulebook of Declaration and 
Labelling of Packed Foodstuffs (SM OG Nos. 04 /03 and 12/03), the Rulebook of Declaration, 
Labelling Presentation and Advertising of Food of Pl ant Origin After Primary Level of Production, 
Composite and Other Food (OG MNE No. 16/11), th e Rulebook on Conditions of Health of Dietary 
Foodstuffs Which Can Be Placed into Circulation (SFRY OG Nos. 4/85, 70/86 and 69/91), and the 
Food Safety Law (RM OG No. 14/07).  Under the F ood Safety Law, food produc ts were required to 
be labelled.  Labels should corr espond to the data specified in the producers' specification and 
requirements prescribed by the Food Safety Law.  In response to a question, she noted that there were 
no other mandatory requirements for labelling besides those prescribed by the Food Safety Law.  Further, the representative of Montenegro confir med that its trading pa rtners would have the 
opportunity to comment on regulations that would re quire food labelling prior to adoption and allow a 
period of at least 60 days for its trading part ners to comment on new or any changes to its 
SPS regulations prior to thei r adoption and enforcement. 
163. Concerning the principle of transparency and th e establishment of a single Enquiry Point, she 
said that Montenegro had no single enquiry point at present, but a Regulation on Notification Procedures of SPS Measures had been adopted in January 2008 to comply with Article 7 and 
Annex B.3 of the WTO SPS Agreement (OG MNE No. 13/2008).  Pursuant to the Regulation, the 
SPS Enquiry Point would be located in the Ministry of Agriculture and Rural Development (Rimski trg br. 46, PC "Vektra" 81000 Podgorica, Montenegro; phone:  (+382) 20 482-109; fax:  (+382) 20 234-306; website:  http://www.mpr. gov.me/ministarstvo).  The enquiry point would 
be responsible for providing information, inter alia , on Montenegro's membership and participation in 
international sanitary and phytosanitary organiza tions, and on bilateral a nd multilateral Agreements 
and arrangements, including the texts of such Ag reements and arrangements (Article 4 of the 
Regulation) and on any SPS measure adopted or pr oposed within its territory; any control and 
inspection procedures, production and quarantine tr eatment, pesticide tolerance and food additive 
approval procedures; and risk assessment procedures, factors taken into consideration, as well as the 
determination of the appropriate le vel of sanitary or phytosanitary protection.  The Ministry would 
also act as Montenegro's notification authority (Article  3 of the Regulation).  Pursuant to Article 14 of 
the Regulation, any significant change or amendmen t of an SPS regulation had to be notified in the 
same manner as a new SPS measure.  In response to  a question, she added that the Veterinary 
Administration, which was under the responsibility of the Ministry of Agriculture and Rural Development, acted as the notification authority to the OIE pursuant to Article 9 of the Rulebook on 
Classification and Notification of Suspicious An imal Diseases, which had been adopted in 
January 2008 (OG MNE No. 05/08).  She further no ted that, as a member of the FAO, Montenegro 
met the notification requirements of the IPPC.  In  response to a Member who had expressed concerns 
over the absence of clear language on transparency in  the Law on Plant Health Protection, she noted 
that such language had been included in the Regulation on Notification Procedures of SPS Measures 
adopted in January 2008 in implementation of Arti cle 12, paragraph 6 of the Law on Plant Health 
Protection.  In her view, the Regulation complied with  the transparency obligations of Annex B of the 
WTO SPS Agreement.  WT/ACC/CGR/38 
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 164. Pursuant to Article 7 of the Regulation on Notification Procedures of SPS Measures, the 
Ministry was obliged to publish a notice of the in tention to introduce an SPS measure on the official 
website of the Ministry (http://www.mpr.gov.me/minista rstvo) at an early stage of development of the 
measure.  The Regulation also required the Ministry to notify members of relevant international 
organizations of the products to be covered by the regulation together with a brief indication of the 
objective and rationale of the proposed regulation.  Draft SPS measures had to be notified to interested parties and published for public comment on the offici al website of the Ministry of Agriculture and 
Rural Development (http://www.mpr.gov.me/ministarst vo), or on the websites of the administrative 
authorities enacting them at least 75 days before their adoption.  The Law on State Administration and 
the Regulation on Notification Procedures of SPS Me asures guaranteed the right of the private sector 
to comment on Montenegro's draft SPS measures.  After adoption, regulations  were published in the 
Official Gazette of Montenegro (RM OG No. 13/ 08).  Asked whether Montenegro's legislation 
provided any guidance on the period of time be tween adoption and implementation of an 
SPS measure, the representative of Montenegro said th at Montenegro's legislation was in compliance 
with the Decision on Implementation Related Issu es and Concerns adopted on 14 November 2001 at 
the Doha Ministerial Conference wh ich referred to a period of not l ess than six months.  In response 
to a concern raised, the representative of Monteneg ro confirmed that there was no legislation that 
would prevent Montenegro from notif ying SPS or SPS-related regulations. 
165. A Member noted that the Protocol on the Harm onization of Operations and Procedures in the 
Foreign Trade of Goods Liable to Mandatory Vete rinary-Sanitary and Phytosanitary Control at the 
Border of State Union of Serbia and Montenegro  appeared to have allowed goods subject to 
veterinary or phytosanitary inspection to pass SPS contro ls in Serbia if brought into Montenegro by an 
importer with a head office in Serbia, and vice ve rsa.  As Montenegro and Serbia had become 
independent countries, the Member requested info rmation on how such preferential treatment had 
been changed.  The representative of Monteneg ro replied that following the independence of 
Montenegro, all requirements for importation of pr oducts subject to veterinary or phytosanitary 
inspection from Serbia to Montenegro and vice versa had become subject to the regular rules applied 
on importation of such products from any country.   
166. The representative of Montenegro said that imports of genetically modified organisms and 
wild species of flora and fauna required a perm it from the Ministry of Agriculture and Rural 
Development, or the Ministry of Sustainable Deve lopment and Tourism.  The wild species of flora 
and fauna subject to import or export licensing had been identified by incorporating the Annexes of 
the CITES Convention into the Control List.  Licen sing requirements for biotech products had been 
eliminated with the abolition of the Law on the Basic Principles of Environment Protection 
(FRY OG Nos. 24/98 and 24/99).  Genetically modi fied organisms were considered potentially 
dangerous to human, plant and animal health and ther efore subject to a special regime pursuant to the 
Law on Genetically Modified Organisms adopted  on 2 April 2008 (OG MNE No. 22/08) and its  
by-laws.  The Law regulated the circulation and ma rking of agriculture and food products originating 
from GMOs.  The Law also prescribed conditions for th e use of GMOs in closed systems (laboratory, 
glass houses); the intentional introduction of GMOs in  the environment; the placing on the market of 
GMOs or GMO products; the handling, transportati on, packing, transit and marking of GMOs or 
GMO products; and the control and supervision of economic operators dealing with GMOs.  The Law 
enabled transportation of approved GMO products a nd included measures to prevent adverse effects 
resulting from the use of GMOs.  The Law was meant to give consumers a choice.  She confirmed that the former procedures applied in the interim.  In response to a question about the role of the 
National Council for Assessment of Safety of Food,  she noted that the Council cooperated with the 
relevant bodies responsible for the regu lation of products of biotechnology. 
167. She added that Montenegro had amended ex isting legislation to comply with the 
WTO SPS Agreement in the area of veterinary me asures, and intended to amend a few additional WT/ACC/CGR/38 
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 provisions in the area of phytosanitary measures.  Wo rk to reach and ensure full compliance with the 
WTO SPS Agreement was ongoing, and included new regulations on animal protection based on 
OIE recommendations and standards; new regula tions on plant protection in conformity with 
IPPC standards; examination a nd harmonization of national legisl ation with Codex Alimentarius 
standards; the elaboration of guidelines and reco mmendations relating to food additives, veterinary 
drugs and pesticide residues; the introduction of a Global Monitoring System on food contamination and Assessment Programme (GEMS/Food); the reorga nization of a national reference laboratory in 
compliance with ISO/IEC standards; and implemen tation of the National Food Safety Strategy.  
These activities would allow Montenegro to accept the pr inciple of equivalence, to perform control, 
inspection and approval procedures consistent with WTO rules, and to take account of risk assessment 
techniques developed by the relevant  international organizations.   
168. The representative of Montenegro confirmed that Montenegro would apply the 
WTO Agreement on the Application of Sanitary and Ph ytosanitary Measures from the date of accession 
without recourse to any transition period.  Th e Working Party took note of this commitment. 
- Trade-related investment measures 
169. The representative of Montenegro said that  Montenegro believed its Law on Foreign 
Investment to be fully compliant with the WTO Agreement on Trade-Related Investment Measures.  Asked to list all investment opportu nities contingent upon the use of local materials in the production 
process, import/export balancing, or linking access to foreign exchange for importation to the value of exports, she noted that an activity licence was re quired to manufacture tobacco goods in Montenegro, 
and Article 15 of the Law on Tobacco (RM OG Nos.  80/04 and 05/05) obliged each manufacturer to 
produce or purchase domestically-processed tobacco to cover at least 40 per cent of the annual output 
of cigarettes and other tobacco pr oducts, and no less than 700 tonnes per year.  The activity licenses 
were administered by the Ministry of Agriculture and Rural Development and the Ministry of Health 
and awarded through public tender (see "Trading Righ ts").  In response to a Member who noted that 
the requirement to buy domestically-processed to bacco appeared to violate WTO rules, the 
representative of Montenegro said that this me asure had been put in place to support some 
500 families who lived in disadvantaged rural ar eas and whose main sour ce of revenue was the 
growing of tobacco.  She noted that the Law on T obacco (OG MNE No. 48/08) had been adopted by 
the Parliament on 11 August 2008.  This Law, had abolished the requirement for each manufacturer to 
purchase a specific quantity of domestically-p rocessed tobacco. 
170. The representative of Montenegro confirmed th at from the date of accession, Montenegro 
would apply its investment regime in a n on-discriminatory manner to imports from all 
WTO Members and to domestically produced good s, in compliance with the WTO Agreement, 
including the WTO Agreement on Trade-Related Inv estment Measures (TRIMs).  The Working Party 
took note of these commitments. 
- Free zones, special economic areas 
171. The representative of Montenegro said that fr ee zones and free warehouses were considered 
part of the customs territory of Montenegro, but business activities carried out there were subject to 
special conditions.  A free zone or free warehouse coul d be founded at or near a seaport or airport, or 
in other suitable locations.  So far, one free zone had been created - at the Port of Bar.  All kinds of 
activity could be conducted in a zone and a wa rehouse, except those prese nting a hazard to the 
environment, human health, material goods or national safety.   
172. The treatment of goods kept in free zones and free warehouses was regulated pursuant to 
Articles 167 to 181 of the Customs Law.  Both fore ign and domestic goods could enter a free zone or  WT/ACC/CGR/38 
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 free warehouse, and no limit was set for the length of time the goods could remain there, although 
such goods could not be consumed, nor used while  being placed in a free zone or free warehouse.  
Exceptionally, certain domestic goods intended for expor t were subject to specific time limits, and if 
the deadline was not complied with or the goods were found to have been returned to another part of 
the customs territory of Montenegro, the Customs authorities would take action as prescribed in cases 
of failure to comply with specific conditions.  Goods could leave a free zone or free warehouse 
temporarily for processing, mounting, testing, attestation, repair, marketing presentation, etc.  Such goods would have to be returned to the zo ne or warehouse (or exported) within a specified 
period and no later than one year from the date th e goods were taken out of the zone or warehouse.  
Upon special authorization of the Customs aut horities, domestic goods not intended for export or 
processing could be stored in a free zone or free warehouse, but such goods would be kept separate 
from other goods.  Goods entering the territory of  Montenegro from a free zone without further 
processing were subject to normal customs duties and charges, internal taxes and other import restrictions, if applicable.   
173. Business activities carried out in a free zone or free warehouse were regulated according to 
the Law on Free Zones (RM OG Nos. 42/04 and 11/07).  A free zone could be divided into several sub-zones.  Goods entering a free zone or free wa rehouse and consumed or used in accordance with 
the Law on Free Zones were not subject to customs duty, customs charges, or VAT.  The Law on Free 
Zones provided incentives to enterp rises operating in a free zone.  These enterprises were not liable to 
pay profit tax or real estate tax; foreign payment operations were generally unrestricted and could be 
carried out through any bank in Montenegro; loans c ould be granted or accepted without restriction; 
labour Agreements could be negotiated freely and up  to 10 per cent of the employees could be foreign 
citizens; capital investments were unrestricted a nd the repatriation of capital and profits was free; 
banks, insurance companies and other financial ins titutions located in a free zone could be wholly 
foreign-owned; a foreign citizen could acquire real estate for his/her business in a free zone regardless 
of any reciprocity provision that would otherw ise apply; and private property could not be 
nationalized or expropriated.  The benefits were not conditioned on any export performance 
requirements.  Goods processed in a free zone and s ubsequently sold in Montenegro were not subject 
to customs duty or customs charges on the domestic  component (raw materials, labour, etc.) in these 
goods.  More favourable conditions applied when th e domestic component exceeded 50 per cent.   
174. A Member noted that the Law on Free Zones (RM OG No. 42/04) also appeared to exempt 
goods processed in a free zone in Montenegro from customs duties and charges on the domestic 
component in such goods.  Once the component exceeded 50 per cent, such goods would not be 
subject to restrictions related to the foreign trade regime.  If no import duties or charges were applied 
in such instances, this provision  would constitute a local content requirement incompatible with 
Article III:5 of the GATT 1994 and Article 3 of the WTO Agreement on Subsidies and 
Countervailing Measures, and the provision would need to be abolished.   
175. In reply, the representative of Montenegro said that Article 21 of the Law on Free Zones 
(RM OG No. 42/04) stipulated that goods imported into Montenegro from a free zone were subject to customs duties, customs charges, VAT, and import r estrictions (if applicable).  Customs duties and 
charges were not payable on domestic materials and labour incorporated into the goods while in the 
zone.  Once the domestic component exceeded 50 per cent, goods imported from the zone were 
considered to be "domestic goods" an d were not subject to restrictions related to the foreign trade 
regime (i.e., quantitative restrictions, licenses, antidumping and countervailin g duties and safeguards 
measures).  Customs duties and other charges we re payable, but decreased according to the 
percentage of domestic component in the goods.  The Law on Free Zones had been amended to 
abolish favourable treatment of goods who se domestic component exceeded 50 per cent 
(OG MNE Nos. 42/04, 11/07 and 76/08). WT/ACC/CGR/38 
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 176. In response to a Member who noted that Article 23 of the Law on Free Zones appeared to be 
inconsistent with Montenegro's State aid a nd anti-subsidy obligations, the representative of 
Montenegro acknowledged that this Article was falli ng short of Montenegro's obligations.  She noted, 
however, that the real effect of this Article w as negligible as Montenegro only had one operational 
free zone, which had attracted a fairly limited number  of companies.  She nevertheless added that any 
provision of the Law on Free Zones inconsistent with WTO rules would be repealed.  The Law on Free Zones had been subsequently amended to abol ish tax incentives for zone founders and operators 
in the free zone.  
177. The representative of Montenegro confirmed th at, from the date of accession, free zones or 
free economic zones established in Montenegro, incl uding those referred to in paragraphs 173 to 176, 
would be administered in compliance with WTO provisions, including the WTO Agreements on TRIPS, TRIMs, and Subsidies and Countervailing Measu res.  She further confirmed that the right of 
firms to establish and operate in these zones wo uld not be subject to export performance, trade 
balancing, or local content requirements, and that goods imported into, or produced from inputs 
imported into, these zones that were exempt from tariffs and certain taxes would be subject to 
standard customs formalities when entering the rest of Montenegro, including the application of tariffs 
and taxes on the imported components in the go ods.  The Working Party took note of these 
commitments. 
- Government procurement 
178. The representative of Montenegro said that Montenegro had enacted the Law on Public 
Procurement (RM OG No. 40/01).  The Law super seded all previous provisions on Government 
procurement in Montenegro.  According to the Law, all public entities should take the necessary 
measures to ensure the widest possible participation on equal terms in their invitations to tender.  
The procurement methods laid down in Article 7 of the Law included:  (i) direct purchasing, 
(ii) competitive bidding; (iii) two-stage bidding; (i v) open international pre- qualification of suppliers 
for major contracts, followed by limited competitive bidding; and, (v) permissible standardization of 
goods undertaken in compliance with the Law.  The solicitation documents should encourage open 
competition, and set forth the detailed needs, pl ace of delivery, minimum performance requirements, 
warranties, maintenance requirements and any othe r pertinent terms and conditions.  Contracts for 
goods and works should be awarded to  the suppliers offering the right quality to meet identified needs 
for the specified quantity, at the lowest calculated pr ice, and at the right time.  Any factors other than 
price that would be taken into account in the eval uation of the offers should be specified in the 
solicitation documents.  Due care shoul d be taken to ensure the confidentiality of the offers.  The Law 
did not provide preferential treatment for domestic suppliers of goods or services.  Local competitive 
bidding - open to all suppliers with their seat or r esidency in Montenegro - would be considered when 
it was determined that foreign companies were not in terested or the project was too small for them.  
179. The appeals procedure was laid down in Article 79 of the Law.  Suppliers were invited to 
address complaints in writing to the public entity conc erned.  Unsatisfied with the response, an appeal 
should be lodged with the Public  Procurement Commission within eight days of receipt of the 
response.  The Public Procurement Commission was obliged to give its reply in writing within 
15 days of receipt of the appeal.   
180. She added that the Law on Public Procurement ha d been reviewed to be fully compliant with 
EU directives.  A new Law on Public Procur ement (RM OG No. 46/06) entered into force on 
29 July 2006.  The representative of Montenegro sai d that the Montenegrin Parliament adopted a new 
Law on Public Procurement (OG MNE No. 42/11), on 29 July 2011, which was expected to be 
implemented as of 1 January 2012.  WT/ACC/CGR/38 
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 181. Some Members asked whether Montenegro intended to join the WTO Agreement on 
Government Procurement upon accession to the WTO.  In reply, the representative of Montenegro 
said that Montenegro would consider joining the WTO Agreement on Government Procurement within a reasonable period after accession.   
182. The representative of Montenegro confirmed that Montenegro would initiate negotiations for 
membership in the WTO Agreemen t on Government Procurement upon accession by tabling an entity 
offer at that time.  She also confirmed that, if th e results of the negotiations were satisfactory to 
Montenegro and the other members of the Agreemen t, Montenegro would complete negotiations for 
membership in the WTO Agreement by 31 Decembe r 2013.  The Working Party took note of these 
commitments. 
- Transit 
183. The representative of Montenegro said that goods in transit were governed by provisions in 
the Foreign Trade Law (RM OG Nos. 28/04 and 37/07), the Customs Law (RM OG Nos. 07/02, 
38/02, 72/02, 21/03, 29/05, 66/06 and 21/08), the Decree on Implementation of the Customs Law 
(RM OG Nos. 15/03 and 81/06), and the Decree on Fees for Use of Roads by Foreign Vehicles 
(RM OG No. 36/05).  Montenegro could prohibit the transit of goods banned under the legislation of 
the Republic of Montenegro pursuan t to the Foreign Trade Law, and her Government could also ban 
imports, temporary imports or tran sit of goods if the circulation of such goods was banned under the 
legislation of the country of export, origin, or destination.   
184. According to Articles 19 and 20 of the Foreign Trade Law, licenses could be required for the 
transit of certain goods.  In these cases, the purpos e of such licensing would be to protect either 
human, animal or plant life or health, national security, the environment or exhaustible natural 
resources, public morals, or intell ectual property rights, or to enforce any special rules related to gold 
and silver.  Based on Article 29 of the Foreign Trade Law, the transit of goods was subject to relevant 
veterinary, sanitary or phytosanitary requirements prescribed for particular types of goods.  
She referred to the revised Decision on Control List for Export, Import and Transit of Goods 
(RM OG No. 45/07) for further details.   
185. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would apply all its laws, regula tions and other measures governing transit of goods (including 
energy), such as those governing charges for transporta tion of goods in transit, in conformity with the 
WTO Agreement, including Article V of the GATT 1994.  The Working Party took note of this 
commitment. 
- Agricultural policies 
(a) Imports 
186. The representative of Montenegro said that cu stoms duties constituted the main form of 
border protection for agricultural goods.  Certain fruit and vegetables were subject to specific duty 
(Table 4) in accordance with the new Law on Cu stoms Tariff, which had entered into force in 
January 2006.  She noted that Montenegro had imposed an additional levy on 124 items pursuant to the Decree on Special Charges on Importation of Ag ricultural and Food Products (RM OG Nos. 61/03 
and 63/03).  However, the Decree ha d been abolished with the entry into force of the Law on Customs 
Tariff in January 2006, and the "special charge" ha d been converted to specific-duty elements of 
compound duties.  Montenegro's nomenclature counted 279 compound duties (Decree on the 
Harmonization of the Customs Tariff Nomenclature for the Year 2008 (RM OG Nos. 75/05 WT/ACC/CGR/38 
WT/MIN(11)/7 Page 54 
 
 
 and 17/07)).  The Law did not grant the authorities discretion to decide on the imposition of special 
levies or adjust such levies according to price or volume thresholds.   
187. Some 56 agricultural products were consider ed "strategic" in the sense that these were 
significant for the living standard of the populatio n and not produced in Montenegro, and these goods 
were accordingly subject to zero tariff or very lo w import duty.  Milk, fats, cooking oil, and sugar 
were considered basic commodities for human cons umption and exempt from VAT in support of low 
income households.  Excise taxes were levied on al coholic beverages and tobacco.  Tobacco was also 
subject to activity licensing.  A certain number of agricultural items were subject to import licensing pursuant to the Decision on Control List for Export, Import and Transit of Goods 
(RM OG No. 45/07).   
(b) Exports 
188. The representative of Montenegro said that Montenegro had applied an export duty of 
20 per cent on raw hides, but the export duty had been  eliminated with the entry into force of the 
present Law on Customs Tariff in January 2006.  No other agricultural product was subject to export 
duty.  Licensing requirements were applied pursuant to the Decision on Control List for Export, 
Import and Transit of Goods (RM OG No. 45/07).   
189. Montenegro had no export credit, export cred it guarantee, or export insurance programmes 
for agricultural or other products.  The Ministry of Agriculture and Rural Development operated a 
programme entitled the ''Improvement of Market Position of Montenegrin Agriculture Products'' 
promoting domestic products at fairs and exhibitions, a campaign ''MADE IN MONTENEGRO'', and 
other promotional activities.  Montenegro sought  to increase the exports of specific domestic 
products, notably early vegetables, lamb meat, nj eguški smoked ham, cheeses, wine, fish, honey, 
medicinal herbs and forestry products.   
(c) Internal policies 
190. The representative of Montenegro said that the agricultural sector had emerged from a 
socialist system favouring so-called "combinats" and neglecting the private sector to a market-based, 
non-interventionist policy framework applied since 2000.  The current agricultural policy focused on 
the development of sustainable agriculture perform ed by private farmers.  The budgetary support to 
the sector was modest (around €12 per capita), and mo re than 80 per cent of the support was allocated 
to "green box" measures.   
191. The representative of Montenegro provided  information on domest ic support and export 
subsidies in the agricultural sector in the format of document WT/ACC/4 for the period 2002-2004 in 
document WT/ACC/SPEC/CGR/1 of 19 April 2005.  Th e data had subsequently been updated to 
cover the period 2005-2007 (d ocument WT/ACC/SPEC/CGR/1/Rev.2 of 10 December 2008).  
In addition to "green box" measu res, support was mainly provided in the form of direct per head 
payments to increase the herds of cattle, sheep and goats; quality breeding programmes (cattle and 
stallions); artificial insemination (cattle and sw ine); beehive modernization; grazing incentives 
(cattle); premiums to increase the production of m ilk and tobacco; premiums for cattle and milk; 
production programmes (figs, potato seeds and olives); and production increase programmes (grass, cereals).  The support exceeded the de minimis  level of 5 per cent for two types of commodities only 
(tobacco and cereals - rye, barley, etc.).   
192. Some Members noted that Montenegro did not apply any export subsidies in agriculture and 
requested Montenegro to bind export subsidies at zero upon accession.  In response, the representative 
of Montenegro confirmed that, upon Montenegro's accession, Montenegro would bind all agricultural  WT/ACC/CGR/38 
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 export subsidies at zero in its Schedule of C oncessions and Commitments on Goods, and would not 
maintain or apply agricultural export subsidies.  The Working Party took note of this commitment.  
- Trade in civil aircraft 
193. The representative of Montenegro confirmed that  Montenegro would become a signatory to 
the WTO Agreement on Trade in Civil Aircraft, with out exemptions or transitional periods, from the 
date of accession to the WTO.  The Work ing Party took note of this commitment. 
- Textiles regime  
194. The representative of Montenegro said that Mo ntenegro did not have any special measures 
regarding trade in textiles.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME - GENERAL - Industrial property protection 
195. The representative of Montenegro said that th e State Union had been responsible for the 
formulation and enactment of substantive intell ectual property legislation before Montenegro's 
independence - implementation and enforcement of State Union laws being the responsibility of the 
Republics.  When the Republic of Montenegro ha d declared its independence in June 2006, the 
Parliament had adopted a resolution whereby all la ws enacted by the State Union of Serbia and 
Montenegro would continue to be effective an d enforced in Montenegro as national laws.  
The Republic of Montenegro was developing its own institutional capacity.  State Union legislation in 
the area of intellectual property included the Law on Copyright and Related Rights 
(SM OG No. 61/04), the Law on Patents (SM OG Nos. 32/04 and 35/04), the Law on Trademarks 
(SM OG Nos. 61/04 and 7/05), the Law on Legal Protection of Designs (SM OG No. 61/04), the Law on Indications of Geographical Origin (SM OG No. 20/06), and the Law on Protection of 
Topographies of Integrated Circuits (SM OG No. 61/04).  In her view, all these laws were in 
compliance with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights 
(WTO TRIPS Agreement).  The representative of Mont enegro noted that the following IP legislation 
was adopted since 2010:  the Trademark Law ( OG MNE No. 72/10); the Law on the Protection of 
Topographies of Integrated Circuits (OG MNE No. 75/10); the Law on Legal Protection of Industrial 
Design (OG MNE No. 80/10); the Regulation on Am ended Regulation for Acting of the Customs 
Authority for Handling the Goods Suspicious of In fringing the Intellectual Property Rights, adopted 
by the Government on 23 June 2011;  the Law on Pr ocedure for Recognition, Changes, Renewal of 
the Trademark and International Registration of  the Trademark (OG MNE No. 50/11); the Law on 
Designations of Origin, Geographical Indicati ons and Indications for Traditional Specialties 
Guaranteed for Agricultural and Food Products (OG MNE No. 18/11), adopted by the Montenegrin Parliament on 17 March 2011 and enacted on 25 March 2011; the first Montenegrin Copyright and 
Related Rights Law (OG MNE No. 37); and, the La w on Changes and Amendments of Optical Discs 
(OG MNE No. 53/11).  
196. New legislation covering intellectual property ri ghts had been developed since Montenegro's 
independence.  A Law on Optical Discs (RM OG No. 02/07) had been adopted in early 2007 and Montenegro's criminal code and customs law had b een amended to be brought into conformity with 
the WTO TRIPS Agreement.  In addition, new laws on plant varieties protection (RM OG Nos. 48/07 and 48/08) and undisclosed information (OG MNE No. 96/07) had been passed in August and 
December 2007, respectively.  She noted that Mont enegro intended to enact new intellectual property WT/ACC/CGR/38 
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 laws covering all intellectual property rights.  She provided detailed information about the 
implementation of the WTO TRIPS Agreement in document WT/ACC/CGR/14 of 30 May 2006.   
- Responsible agencies for policy formulation and implementation 
197. The representative of Montenegro said that the Ministry for Economic Development was 
responsible for the protection of industrial property rights and the Ministry of Culture and Media for 
the protection of copyright and related rights.  A Montenegrin Intellectual Property Office (MIPO), 
responsible for the registration of intellectual pr operty rights in Montenegro, had been established 
(Decree on a Manner and Organization of the State Administration RM OG Nos. 54/04, 78/04, 06/05, 61/05, 06/06, 32/06, 42/06, 56/06, 60/06, 72/06 a nd 06/07).  The MIPO had become fully operational 
on 28 May 2008.  The Ministry for Economy w as responsible for overseeing MIPO's activities. 
198. A Regulation on Recognition of Intellectual Prope rty Rights, which regulated the recognition 
of all intellectual property rights registered with the Union Intellectual Property Office or the Serbian 
Intellectual Property Office (SIPO), had been adopted in September 2007 (RM OG No. 61/07).  Under the Regulation, any rights registered with the Union Intellectual Property Office or SIPO and 
pending applications filed with these Offices before  MIPO had become operational were enforceable 
in Montenegro.  Since 28 May 2008, when MIPO ha d started operating, all applications had to be 
filed with the Montenegrin Office. 
199. She added that enforcement of border measures was the responsibility of the Customs 
Administration and criminal enforcement the responsibility of the Ministry of Justice. 
- Participation in international intellectual property agreements  
200. The representative of Montenegro said that M ontenegro had become a member of the World 
Intellectual Property Organization (WIPO) on 3 December 2006 and, as a successor State of the former State Union of Serbia and Montenegro, Mo ntenegro had accepted the Convention Establishing 
the World Intellectual Property Organization; the Paris Convention for the Protection of Industrial 
Property; the Berne Convention for the Protection of Literary and Artistic Works; the 
Madrid Agreement for the Repression of False or Deceptive Indications of Source on Goods; the 
Madrid Agreement Concerning the International Regi stration of Marks; the Protocol Relating to the 
Madrid Agreement Concerning the International Registration of Marks; the Hague Agreement 
Concerning the International Deposit of Industrial Designs (the Hague Act (1960) and the Stockholm 
Complementary Act (1967)); the Nice Agreement Concerning the International Classification of 
Goods and Services for the Purposes of the Registration of Marks; the Locarno Agreement 
Establishing an International Classification for In dustrial Designs; the Lisbon Agreement for the 
Protection of Appellations of Origin and their In ternational Registration; the Nairobi Treaty on the 
Protection of the Olympic Symbol; the Trademark Law Treaty; the WIPO Copyright Treaty; the WIPO Performances and Phonograms Treaty; the Buda pest Treaty on the International Recognition of 
the Deposit of Micro-organisms for the Purposes of Patent Procedure; the Patent Cooperation Treaty; 
the Brussels Convention Relating to the Distribu tion of Programme-Carrying Signals Transmitted by 
Satellite; the Geneva Convention for the Prot ection of Producers of Phonograms Against 
Unauthorized Duplication of their Phonograms; the Treaty on the International Registration of Audiovisual Works; and the Rome Convention fo r the Protection of Performers, Producers of 
Phonograms and Broadcasting Organizations.  The La w on Ratification of the Vienna Agreement on 
International Classification of the Figurative Elements of Trademarks and the Law on Ratification of 
the Hague Agreement on Internationa l Registration of Industrial Design were published in the Official 
Gazette of Montenegro (OG MNE No. 08/11).  The Law on Ratification of the Strasbourg Agreement on International Classification of Patents and the Law on Ratification of the Patent Right had been 
adopted by the Montenegrin Parliament on 1 November 2011.    WT/ACC/CGR/38 
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 201. In response to a question about Montenegro's plans to enact legislation to implement the 
Geneva Phonograms and Brussels Satellite Conventions , the representative of Montenegro noted that 
these conventions, as all international conventions and Agreements ratified by the former Federal 
Republic of Yugoslavia or the State Union, were an  integral part of Montenegro's legal system.  
These conventions were directly enforceable and prev ailed over domestic legislation.  She noted that 
the Law on Copyright and Related Rights captured the main elements of these two conventions.  
In her view, the implementation of these conven tions did not require th e adoption of any new 
legislation.   
- Application of national and MF N treatment to foreign nationals  
202. The representative of Montenegro said that pur suant to Article 106 of the Law on Copyright 
and Related Rights, Article 6 of the Law on Trad emarks, Article 7 of the Law on Indications of 
Geographical Origin, Article 10.2 of the Law on Lega l Protection of Design, Article 3 of the Law on 
Patents, and Article 7 of the Law on Protection of Topographies of Integrated Circuits, foreign natural 
and legal persons enjoyed the same intellectual pr operty rights as domestic na tural and legal persons 
when so provided for under international Agreemen ts or under the principle of reciprocity.  
The representative of Montenegro noted that foreign natural and legal persons continued to enjoy the 
same intellectual property rights as domestic natura l and legal persons pursuan t to the newly adopted 
IP legislation, namely:  Article 5 of the Law on th e Protection of Topographies of Integrated Circuits; 
Article 4 of the new Trademark Law; Article 3 of the new Patent Law, Article 3 of the new Law on 
Legal Protection of Industrial Design; and, Article  196 of the new Copyright and Related Law.  Upon 
accession, all WTO Agreements, including the WTO TRIPS Agreement, and all intellectual property 
conventions and treaties to which Montenegro was a party would become part of Montenegro's legal 
system and would supersede domestic legislati on, thereby ensuring the application of national 
treatment to foreign nationals.  The only exception to this general national treatment rule was the 
requirement that foreign nationals be represented by registered agents or domestic attorneys when 
dealing with governmental bodies administering inte llectual property rights (Article 11 of the Law on 
Trademarks, Article 11 of the Law on Indications of Geographical Origin, Article 16 of the Law on 
Legal Protection of Design, and Artic le 4 of the Law on Patents).   
203. She added that Montenegro's legislation did not contain any specific provision on 
MFN treatment.  However, MFN treatment was guaranteed through the direct application of the WIPO Conventions, to which Montenegro was a party.  Upon Montenegro's accession, the 
WTO TRIPS Agreement would also become an integr al part of Montenegro's legal system, and the 
provisions of Article 4 on MFN treatment would then  be directly enforceable.  The representative of 
Montenegro stated that, in her view, all the newl y adopted domestic IP legislation had been fully 
harmonized with the WTO TRIPS Agreement. 
204. In response to a Member who invited Mont enegro to amend the Law on Copyright and 
Related Rights to incorporate explicitly the nati onal treatment principle, the representative of 
Montenegro said that the Berne Convention w as directly enforceable and took precedence over 
domestic laws and regulati ons.  In her view, the Law on Copyrigh t and Related Rights did not need to 
be amended.  The representative of Montenegro conf irmed, however, at a later stage that Montenegro 
adopted a new Copyright and Related Rights Law ( OG MNE No. 37/11), which, in her view, fully 
incorporated the Berne Convention. 
- Fees and taxes
 
205. The representative of Montenegro said that M ontenegro was in the process of setting its own 
fees and taxes for registration of intellectual prope rty rights with MIPO.  A Law on Amendments to 
the Law on Administrative Taxes had been adopted in April 2008 to this effect (OG MNE No. 22/08).  WT/ACC/CGR/38 
WT/MIN(11)/7 Page 58 
 
 
 She provided a list of fees for registration of in tellectual property rights in Annex 1 of document 
WT/ACC/CGR/28/Add.2.  Previously, Montenegrin nationals only had to pay 10 per cent of the 
prescribed fees.  However, she confirmed that in  accordance with the Amendments to the Law on 
Administrative Taxes, Montenegrin and foreign nationals  were subject to the same fees, as of the date 
of accession to the WTO.   
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS  
- Copyright and related rights  
206. The representative of Montenegro said that copy right and related rights were protected under 
the Law on Copyright and Related Rights of 24 December 2004 (RM OG No. 61/04) which was later 
superseded by the Copyright and Related Rights Act adopted on 12 July 2011 (OG MNE No. 27/11).  The Law regulated the rights of authors of literary , scientific and artistic works; performers; producers 
of phonograms and videograms; br oadcasting organizations; and da tabase producers (Article 1).  
Copyright was provided for original intellectual crea tions, irrespective of form; artistic, scientific or 
other value; purpose; size; content; and expression (Ar ticle 2).  Literary, artistic, and scientific works 
protected included written works (books, brochures, ar ticles, translations, computer programs in any 
form, including preparatory design material and other); spoken works (lectures, speeches, 
orations, etc.); dramatic, dramatic-musical, chor eographic and pantomime works, as well as works 
originating from folklore; musical works, with or  without words; films (cinema and television); 
fine art works (paintings, drawings, sketches, graphics,  sculptures, etc.); works of architecture, applied 
art and industrial design; cartographic works (geogr aphic and topographic maps); drawings, sketches, 
dummies and photographs; and theatre plays (Article  2).  Satellite broadcasting was regulated under 
Article 28 of the Law on Copyright and Related Ri ghts, and optical discs were protected under the 
Law on Optical Discs (RM OG No. 02/07).  The Law on Optical Discs provided for fines and for the 
temporary prohibition of the ma nufacturing of optical discs and/ or production parts in case of 
infringement of intellectual property rights.   
207. Copyright arose from the moment the work was created.  Copyright protection was provided 
for the lifetime of the author and 70 years afte r his/her death.  The rights of performers and 
phonograms and videograms producers were protected fo r 50 years from the date of recording or first 
disclosure of the performance, the rights of broad casting organizations for 20 years from the date of 
first broadcast, and the rights of database produ cers for 15 years from the date of creation of the 
database - in the case of significant modifications of  the database contents, the term of protection 
could be extended for another 15 years.  Protection of  copyright and related rights was not subject to 
any acquisition or use requirements, but the Law provided for optional deposit procedures.   
208. Right holders had the exclusive right to expl oit the work and aut horize its publication, 
reproduction and circulation, including its presentati on in public, broadcast, adaptation, and rental 
(Articles 19 to 37).  Limitations to authors' economi c rights were laid down in Articles 40 to 55 of the 
Law.  The moral rights of authors and copyright holders were provided in Articles 14 to 18 of the 
Law.  Moral rights were perpetual and indivisibl e.  The economic and moral rights of a deceased 
author, with the exception of the right to publish an undisclosed work and the right to modify an 
existing work, were transferred to th e heirs of the author or, in their absence, to authors' associations 
and arts and science institutions (Article 56).  Af ter expiration of the author's economic rights, 
authors' associations and arts and science institutions  were responsible for protecting the moral rights 
of deceased authors (Article 150).  Noting that para graph 2 of Article 150 stipulated that any person 
was entitled to protect the right of authorship an d integrity of the works of a deceased author, a 
Member questioned who would speak for the author  in case of disagreement.  The representative of  WT/ACC/CGR/38 
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 Montenegro replied that there was no clear provision on this issue.  In her view, the heirs of the 
author, or in their absence the au thors' association or relevant ins titution, would have a predominant 
influence.   
209. In response to a question, she confirmed that  the statutory licence created in Article 53 
extended to for-profit educational institutions.  In he r opinion, this Article complied with the concept 
of statutory licence set-out in Article 9.2 of the Berne Convention, which did not exclude commercial 
entities from the scope of such licenses.  A Member  noted that Article 54 of the Law on Copyright 
and Related Rights appeared to create a TRIPS-inc onsistent statutory licence, as any literary work 
published in a mass media could be subsequently reproduced or communicated to the public, unless 
the publisher or author expressly prohibited such  reproduction or communication.  This Member 
invited Montenegro to bring this Article into  conformity with the WTO TRIPS Agreement.  
In response, the representative of Montenegro sai d that Article 54 of the Law on Copyright and 
Related Rights reflected the provisions of Article 10 bis(1) of the Berne Convention, which allowed 
national legislation to provide for free use or stat utory licence for the use of  pertinent works.   
210. Asked to clarify the scope of Article 38, the representative of Montenegro explained that 
Article 38 did not establish a personal use exception, nor did it impose any statutory licence.  Article 38 gave right holders a right of compen sation for economic losses caused by the use of 
technical devices used for (unlawful) copying of c opyrighted works.  This Article entitled collective 
rights associations to levy a duty on imports or sales of such technical devices.   
211. In response to a Member who asked how Monten egro intended to codify into the Law on 
Copyright and Related Rights Article 18 of the Be rne Convention, which required that copyright 
protection be applied to all works which had not falle n into the public domain in the country of origin 
through the expiry of the term of protection, the representative of Montenegro noted that Article 195 
of the Law on Copyright and Related Rights provided for such protection.  Pursuant to this Article, 
copyright protection extended to all works, which at the moment of entry into force of the Law, had 
not fallen into the public domain through the expiry  of the term.  Works which had fallen into the 
public domain through the expiry of the term could no t be protected anew.  There was, in her view, no 
need for further codification of Article 18.  Sh e added that the Berne Convention was directly 
enforceable and took precedence over domestic legislation.   
212. Some Members questioned the compatibility of  Article 125 of the Law on Copyright and 
Related Rights relating to phonograms with Ar ticle 15 of the WIPO Performances and Phonograms 
Treaty and of Article 144(2) of the Law on Copyright  and Related Rights concerning the protection of 
producers of videograms with Article 12 of th e WTO TRIPS Agreement.  In response, the 
representative of Montenegro acknowledged that the Law on Copyright and Related Rights was 
falling short of the requirements of paragraph 4 of Article 15 of the WIPO Performances and 
Phonograms Treaty and of Article 12 of the WTO TRIPS Agreement.  She noted that a new law on 
copyright would be developed to replace the State Union legislation on copyright and bring 
Montenegro's copyright legislation into full co nformity with the WTO TRIPS Agreement and the 
WIPO Performances and Phonograms Treaty.  At a later stage, the representative of Montenegro 
confirmed that the Montenegrin Copyright and Related Rights Law (OG MNE No. 27/11) had been 
adopted. 
213. In reply to a specific question as to why the new Law (OG MNE No. 27/11) made the 
distinction between paid rental and nonpaid lending, the representative of Montenegro stated that 
direct or indirect economic advantage was the crite rion to distinguish between rental and lending.  
The distinction used in the new Montenegrin La w of 2011 was based on the European Directive 
2006/115/EC of 12 December 2006 on Rental Right a nd Lending Right and on Certain Rights Related 
to Copyright in the Field of Intellectual Property, and was also in line with the WT/ACC/CGR/38 
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 WTO TRIPS Agreement.  Asked to explain why the Law included the lending but not the rental right 
for computer programs and why the provision related to lending did not carve out situations in which 
the program itself was not the essential object of the rental as per Article 11 of the WTO TRIPS Agreement, the representative of M ontenegro stated that under Article 23 of the new Law, the rental 
right referred to a "work" without any limitations, i.e. it comprised all categories of works including 
computer programs.  Under Article 24, the lending right (with all its characteristics) was reduced to a remuneration right, with one exception:  it remained an exclusive right for the lending of computer 
programs.  The carving out of non-essential objects fr om copyright (not only from rental and lending 
rights) was regulated in Article 56 of the Law. 
214. Asked to explain as to how Article 46 of the new Law complied with the three-step test in 
Article 13 of the WTO TRIPS Agreement, the represen tative of Montenegro stated that the scope of 
Article 46 was strictly limited, which was achieve d by several conditions, applied cumulatively:  
(i) parts of works for most categories of works; ( ii) solely as illustrations; ( iii) intended for teaching; 
(iv) according to a public curriculum or for scien tific research; (v) in readers and textbooks; and 
(vi) inclusion of works of several authors.  This limited scope addressed the second step of the  
three-step test.  The use under Article 46 was subject to the payment of remuneration, which addressed the third step of the three-step test.  She added that the three-step test was expressly 
incorporated in paragraph 1 of Ar ticle 45 of the Law, i.e. that each  limitation had to be additionally 
examined in the light of the three-step test.  Even if all specific conditions of a certain limitation were 
fulfilled, such limitation in practice could not be  acknowledged if it did not satisfy the (general) 
criteria of the three-step test. 
215. A Member expressed concerns that Montenegro's  new Copyright Law prohibited right holders 
from individually managing works that were ma naged by a collective management organization 
(Article 154) and there was mandatory collectiv e management for certain uses of dailies and 
periodicals (Article 155).  Montenegro was asked to  explain how this arrangement complied with the 
three-step test in Article 13 of the WTO TRIPS Ag reement.  The representative of Montenegro stated 
that the obligation-to-contract-rule in paragraph 1 of Article 154 of the Law applied to collective 
Societies, not to authors or right holders.  Once an  author entered a Society, he could not manage his 
rights individually.  Mandatory collective management  in Article 155 was restricted to cases of mass 
use of protected matter, where individual management was impossible or economically not feasible.  In her view, collective management (including manda tory) was not a limitation or exception to rights 
(i.e. in spite of mandatory collective management th e authorization right as such remained intact, only 
the exercise of this right was regulated to some extent) but strengthened the position of authors or 
right holders.  Hence, this issue did not fall unde r paragraph 1 of Article 45 of the new Law and 
Article 13 of the WTO TRIPS Agreement. 
- Trademarks, including service marks  
216. The representative of Montenegro said that  trademarks, including service marks, were 
previously protected under the State Union Law on Trademarks (SM OG Nos. 61/04 and 07/05).  She noted, however, that the new Trademark Law (OG MNE No. 72/10) superseded the State Union 
legislation on trademarks.  A trademark could cons ist of words, slogans, letters, numbers, pictures, 
drawings, colour combinations, three-dimensional forms, or a combination of such elements, as well as musical phrases that could be shown graphically.   
217. Previously, applications for registration had to  be filed with the Union Intellectual Property 
Office (MIPO as of 19 July 2007).  The representativ e of Montenegro noted that applications for 
registration now had to be filed with the Monten egrin Intellectual Property Office (MIPO), which was 
established on 11 May 2007 and was fully operational since 28 May 2008.  Documents to be submitted included the registration form; the sign to be protected; a list of goods and services to which  WT/ACC/CGR/38 
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 the sign applied; and in the case of registration of  collective trademarks, the general act on collective 
trademark which set-out the conditions of use of coll ective trademarks and the measures to be taken in 
case of infringement of the collective trademark or  violation of the general act.  Registration was 
subject to fees set-out under the Law.  Under the State Union Law on Trademarks, applications were 
examined as to form and substance.  Prior use was not a precondition for registration.  Priority rights 
for registered trademarks were set according to the filing date and the rules of the Paris Convention.  
Registered marks were published in the Official Journal of the Union Intellectual Property Office 
(MIPO Official Journal as of 19 July 2007).  Pr otection was provided for ten years from the filing 
date, a period which could be extended an unlimite d number of times upon payment of the appropriate 
fee.  In accordance with the new Trademark Law (OG MNE No. 72/10), applications for trademark 
registration continued to be exam ined.  Pursuant to the Law, all applications for trademark 
registrations were published in the Gazette of the Montenegrin Intellectual Property Office.  Legal and 
natural persons, associations of producers of goods  and services, services providers, commercials and 
consumers were entitled, within a three-month period , to provide in writing a request for refusal for a 
filed application for registration.  Within this thr ee-month period, owners of earlier rights also had the 
right to oppose an application for registration at the Montenegrin Intellectual Property Office.  If there was no opposition to the filed application for tradem ark registration, the trademark was registered.  
However, in case any party opposed a trademark app lication, MIPO would seek a formal response of 
the applicant to then take the decision on accep ting or refusing the application for trademark 
registration.   
218. Under the State Union Law on Trademarks, failure  to use a trademark for an uninterrupted 
period of five years without justified reasons could lead to termination of the protection.  "Justified 
reasons" were understood to mean any circumstan ces occurring independently of the right holders' 
will and creating obstacles to the use of the tradem ark.  A registered trademark could be declared 
void, partly or fully, if it was determined that, at  the time of approval, the legal conditions had not 
been met.  Pursuant to Article 51, paragraph 1 of th e Law, the IP Office, if informed - in any way and 
by any interested party - that the requirements fo r registration had not been met, could invalidate a 
trademark ex officio.  The representative of Monten egro noted that Article 17 of the new Trademarks 
Law (OG MNE No. 72/10) continued to regulate the fa ilure to use a trademark for an uninterrupted 
period of five years without justified reasons.  Sh e added that the Law also regulated the use of 
trademarks with the consent of the trademark owne r or the person authorized to use the collective 
trademark.  Article 54 of the new Law provided for court proceedings in cases of non-use of 
trademarks.  Article 51 regulated the invalidation or  declaration of void trademarks by which every 
natural and legal person was entitled to file a co mplaint at the competent court in cases where the 
trademark registration had been carried out contra ry to Article 6 of the new Trademark Law.   
219. The State Union Law on Trademarks also included specific provisions on the protection of 
well-known marks.  Under the Law, a mark which was a reproduction, imitation, translation or 
transliteration of a well-known mark used by thir d persons for marking their goods and/or services, 
could not be protected as a trademark, if the use of such a mark would result in an unfair benefit or an 
injury to the distinctive character and/or reputa tion of the well-known mark.  The representative of 
Montenegro noted that paragraphs 1 to 4 of  Article 7 of the new Trademark Law (OG MNE 
No. 72/10) continued to include specific provisi ons on well-known marks.  She added that these 
provisions of the new Law were in compliance with Article 6 bis of the Paris Convention. 
- Geographical indications, including appellations of origin  
220. The representative of Montenegro said that a Law on Indications of Geographical Origin was 
adopted on 11 May 2006 (SM OG No. 20/06).  The Law protected appellations of origin and 
geographical indications (Article 1) .  Appellations of origin were de fined as the geographical name of 
a country, region or locality, used to designate a product originating therein, the quality and WT/ACC/CGR/38 
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 characteristics of which were due exclusively or  essentially to the geographical environment, 
including natural and human factors, and which was produced, manufactured or processed within a 
specific limited geographical area (Article 3).  Geographical indications were indications that identified a good as originating from the territory of a specific country, region or locality within such 
territory, where a quality, reputation or other charact eristic of the good could be essentially attributed 
to its geographical origin (Article 4).  The re presentative of Montenegro noted that a new Law on 
Geographic Indications of Origin (OG MNE No. 48 /08) and a new Law on Designations of Origin, 
Geographical Indications and Indications for Traditio nal Specialties Guaranteed  for Agricultural and 
Food Products (OG MNE No. 18/11) had been adopted.    
221. Applications for registration of appellations of origin and geographical indications had to be 
filed with the Union Intellectual Property Office (MIPO as of 19 July 2007).  Documents to be submitted included the registration fo rm, data on the geographical area a nd, in the case of appellations 
of origin, a report on the method of production and the qualities and characteristics of the product.  
Natural and legal persons wishing to use a geographical  indication or an appellation of origin had to 
file an application with the Union Intellectual Property Office (MIPO as of 19 July 2007) for 
recognition as an authorized user.  Applications for recognition as an authorized user had to be 
accompanied by a proof of activity and, in the case of appellations of origin, by a product control 
certificate.  Applications for registration of appe llations of origin and geographical indications, and 
appellations for recognition as an authorized user we re examined as to form and substance.  Approved 
appellations of origin and geographical indicatio ns and recognitions of authorized users were 
published in the Official Journal of the Union Inte llectual Property Office (MIPO Official Journal as 
of 19 July 2007).  The validity of appellations of origin and geographical indications was not limited 
in time.  The right to use an appellation of origin  or a geographical indication was granted for three 
years from the date of entry of the authorized user in the appropriate registry.  This right could be 
renewed an unlimited number of times upon submi ssion of new applications for recognition.  
Registration of appellations of or igin or geographical indications and recognition as an authorized 
user could be declared void if it was determined th at, at the time of approval, the legal conditions had 
not been met or, in the case of recognition as an aut horized user, that the conditions for recognition 
had ceased to exist.  Registered appellations of or igin and geographical indications ceased to be valid 
when protection in the country of origin elapsed, and registered geographical indications could be 
annulled by court decision if it was established th at a geographical indication had become a generic 
name.  She confirmed that Montenegro's legisla tion on geographical indica tions covered all goods.  
Non-geographical names (e.g. traditional or historic  names) could be regi stered as geographical 
indications in accordance with the new Law on Desi gnations of Origin, Geographical Indications and 
Indications for Traditional Specialties Guarant eed for Agricultural and Food Products (OG MNE 
No. 18/11).  The competence in the field of geographic indications of origin and indications of 
sources was divided between the Montenegrin Inte llectual Property Office and the Ministry of 
Agriculture and Rural Development of Montenegro.  Applications for the registration of appellations 
of geographic indications of origin and indications of source for food, agricultural products and wine 
were to be submitted to the Ministry of Agriculture  and Rural Development.  Applications for other 
products were to be submitted to the Montenegrin Intellectual Property Office. 
222. A Member was concerned that the provisions of Article 14 of the new Law requiring foreign 
applicants to submit documents proving the appli cant's right to the geographical indication in the 
country of origin could be used to deny protecti on to applications from countries with a different 
system of protection.  This Member sought confirmation that certification mark registrations or  non-official documents such as affidavits were accepte d as evidence of protection.  In response, the 
representative of Montenegro explained that Article 14 allowed foreign persons to file an application 
if the appellation of origin or geographical indication was recognized in the applicant's country of 
origin, irrespective of the registration system a pplied in that country.  Thus, certification mark 
registrations and affidavits were accepted as ev idence of protection.  Owners of geographical  WT/ACC/CGR/38 
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 indications could provide their own affidavits att esting protection in the country of origin, provided 
such documents were considered sufficient to prove the existence of a right in the country of origin. 
223. Asked to explain the rationale of Article 7 which excluded from protection geographical 
indications for wines identical to the name of a variet y of grape that existed in the territory of Serbia 
and Montenegro before 1 January 1995, the represen tative of Montenegro replied that, in her view, 
Article 7 of the Law was consistent with Article 24.6 of the WTO TRIPS Agreement.  She added that 
a Law on Wines (RM OG No. 36/07; OG MNE No. 40/11) had been adopted, which provided that the Ministry of Agriculture was in charge of the wine  register.  This Law also defined the terms for 
production and the quality of wines, as well as labelling,  packaging, storing, inspections and criminal 
measures. 
224. Noting that Article 46 prohibited the transfer  of rights, licence Agreements, pledges, 
franchises or the like of geographical indications  and relevant trademarks, a Member invited 
Montenegro to explain the effect of such a provision on geographical indications originating in a foreign country where such transactions were not pr ohibited, and the result if such a transaction was 
effected.  In response, the representative of Mont enegro explained that Article 46 applied only to 
domestic geographical indications and appellations of origin.  Ar ticle 46 had no effect on foreign 
geographical indications, including those originating in a country where such transactions were not 
prohibited.  She added that if such a transac tion was made, it would be declared void and the 
geographical indication or appellation of origin would not be cancelled.  The representative of 
Montenegro said that this area was also regulat ed by the new Law on Designations of Origin, 
Geographical Indications and Indications for Traditio nal Specialties Guaranteed  for Agricultural and 
Food Products (OG MNE No. 18/11).   
225. A Member noted that Article 44 of the new Law did not seem to protect the rights of 
trademark owners as required by Articles 16.1 and 24 .5 of the WTO TRIPS Agreement, as it appeared 
to allow for a geographical indication to be register ed even in case of conflict with a prior trademark 
which could result in a likelihood of confusion.  The representative of Montenegro noted that 
Article 44 referred only to geographi cal indications, not to appellations of origin.  She acknowledged, 
however, that Article 44 did not guarantee the ex clusive rights of the owner of a prior-in-time 
trademark against a later-in-time and confusingly sim ilar geographical indication.  In order to address 
this issue, a new Law on Indications of Geographica l Origin had been passed by the Parliament on 
29 July 2008 in replacement of the former Union law (OG MNE No. 12/08).  The Law had come into 
effect on 19 August 2008 and, in her view, was in full compliance with  Articles 16.1 and 24.5 of the 
WTO TRIPS Agreement.   
- Industrial designs  
226. The representative of Montenegro said that industr ial designs were protected pursuant to the 
Law on Legal Protection of Design (SM OG No. 61/04) .  Industrial designs were defined as the  
two-or three-dimensional appearance of a product or  part thereof whose character resulted from its 
ornamentation or special features of lines, contours, colours, shape, texture, or materials, or their combination (Article 2).  Only new industrial d esigns presenting an "individual character" could be 
registered (Article 3).  A design was considered  "new" when no identical design had been made 
available to the public before the date of filing of the application for registration, or when no 
application for registration of an identical design ha d yet been filed.  Designs were deemed identical 
when they presented only "immaterial," i.e. neg ligible, differences (Article 4).  A design was 
considered to present an "individual character" when the overall impression the design produced on an 
informed user differed from the overall impression produced by any other design made available to 
the public before the date of filing of the application for registration (Article 5).  WT/ACC/CGR/38 
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 227. Applications for registration of an industria l design had to be submitted to the Union 
Intellectual Property Office (MIPO as of 19 July 2008).  Registered designs were protected for 
25 years from the filing date, provided the prescrib ed fees had been duly paid (Article 11).  
Registration could be nullified if it was proven th at the required conditions had not been met when 
protection had been granted.  The representative of Montenegro noted that a new Law on Legal 
Protection of Industrial Designs (OG MNE No. 80/10) had been adopted. 
- Patents  
228. The representative of Montenegro said that th e Law on Patents (SM OG No. 32/04) protected 
inventions under two regimes, the patent regime and the petty patent regime.  Patents protected 
inventions which were new, involved an inventive st ep, and were industrially a pplicable (Article 2).  
Petty patents protected inventions with a lesser level of inventiveness.   
229. Applications for registration of a patent had to  be filed with the Union Intellectual Property 
Office (MIPO as of 19 July 2008).  Documents to  be submitted included the registration form, 
a description of the invention, one or more claims for protection of the invention through a patent or 
a petty patent, any drawings referred to in the descrip tion and claim(s), an abstract of the description, 
and proof of payment of the prescribed filing fee.  Pa tent applications were subject to examination as 
to form and substance.  App lications having successfully passed the formal examination were 
published in the Official Journal of the Union In tellectual Property Office (MIPO Official Journal 
once MIPO as of 19 July 2008).  Their substance was examined after payment of the prescribed examination fee.  Registered patents were published in the Official Journal.  Priority rights were 
established according to the filing date or, if applicab le, to the priority rules of the Paris Convention.  
Petty patent applications were only examined as to form.  Petty patent applications were not 
published, but approved petty patents were subject to publication.   
230. Patents were granted for 20 years, non-renewabl e, from the filing date.  Petty patents were 
valid for six years from the filing date, a period which could be renewed twice for two years upon 
payment of the prescribed fee.  Patents and petty pa tents could be declared void if it was proven that 
the required conditions had not been met when protecti on had been granted or that the extent of rights 
granted was broader than justified by the description of the invention.   
231. Conditions and procedures for granting compulsory  licenses were laid down in Articles 63 to 70 
of the Law.  Compulsory licenses could be granted in  case of refusal of the patent holder to conclude a 
licensing Agreement, or of imposition of unjusti fied conditions for the conclusion of such 
an Agreement.  The scope and duration of a compul sory licence were limited to the purpose for which 
the licence had been granted.  Re quests for issuance of compulsory licenses had to be submitted to the 
Ministry competent in the field in which the invention would be applied.  Decisions to grant a compulsory licence were subject to judicial revi ew by the Administrative Court of Montenegro 
(Article 70).  The right of the patent holder to re muneration was regulated by Article 64.  Under this 
Article, in the absence of Agreement between the part ies, the Basic Court or the Commercial Court, as 
the case may be, determined the amount of remune ration and the method of payment, taking into 
account the merits of each individual case and the economic value of the compulsory licence - basic courts had jurisdiction over natural persons and commercial courts over lega l persons and 
entrepreneurs.  In response to a Member who asked  whether remuneration decisions of basic courts 
and commercial courts were subject to judicial  review as required under Article 31(j) of the 
WTO TRIPS Agreement, the representative of Monteneg ro confirmed that decisions of basic courts 
could be appealed to the Superior Court and decisi ons of commercial courts to  the Appellate Court.  
232. Asked to clarify the apparent contradiction be tween Article 7.2 which prohibited patents for 
surgical, therapeutic or diagnostic methods, and Ar ticle 8 which allowed patents of new surgical,  WT/ACC/CGR/38 
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 therapeutic or diagnostic methods using a know n substance, the representative of Montenegro 
explained that Article 7.2 prohibited patents for surgical, therapeutic, or diagnostic methods, but 
allowed patents for substances or compositions used in these methods.  As for Article 8, it stipulated 
that substances and compositions for treatment by surgical, therapeutic or diagnostic methods which 
had not been used in a similar way before were patentable.  Thus, while surgical, therapeutic or 
diagnostic methods could not be protected through  a patent, substances and compositions used in 
these methods were patentable.   
233. A Member noted that Article 43, by requiring th at the subject matter of a patent application 
"constitute a technical solution of a specific problem", seemed to create a fourth requirement of 
patentability in contradiction with Article 27.1 of  the WTO TRIPS Agreement.  This Member also 
observed that Article 63 did not ensure that in the case of semiconductor t echnology, the scope and 
duration of a compulsory licence should only be for public non-commercial use or to remedy a 
practice determined after judicial or administrativ e process to be anti-competitive as provided for in 
Article 31(c) of the WTO TRIPS Agreement.  In r esponse, the representative of  Montenegro said that 
a new Law on Patents had been drafted to bring Montenegro's regime into conformity with 
Articles 27.1 and 31(c) of the WTO TRIPS Agreement.   The new Patent Law had been adopted by the 
Parliament on 22 October 2008 and published in OG MNE No. 66/08.  The Law was in force. 
234. A Member expressed concern that exceptions to  exclusive rights listed in paragraph 2 of 
Article 45 of the Patent Law were too broad and asked how they complied with Article 30 of the 
WTO TRIPS Agreement.  The representative of Mont enegro replied that exceptions provided in the 
Law were solely intended to help development of scientific research in Montenegro.  In reply to a 
specific question as to how the Law addressed the n eed to balance acceptable private use with the 
need to prevent unreasonable prejudice to the rights of  patent holders, she said that the meaning of 
this provision focussed on the actual use, i.e. if th e product was used by one person to satisfy his own 
personal needs and not for profit such use qualified for the exemption referred to in paragraph 1 of 
Article 45.  In her view, Article 45 was in line with Article 30 of the WTO TRIPS Agreement.  
She also added that the Law was drafted in such a way that all the relevant provisions of the Law 
would ensure that any exceptions to rights of the patent holders did not unr easonably interfere with a 
normal exploitation of the patent and did not unreas onably prejudice the legitimate interests of the 
patent holder.  
235. In reply to a concern that item 1 in paragr aph 1 of Article 49 of the new Law appeared 
inconsistent with Article 27 of the WTO TRIPS Agreement, the representative of Montenegro said 
that there was no discrimination as to the place of invention, the field of technology and whether products were imported or locally produced , as stipulated in Article 27.1 of the 
WTO TRIPS Agreement.  As regards the implem entation of Article 31(i) of the WTO TRIPS 
Agreement, the representative of Montenegro said th at it was incorporated into Article 56 of the 
Patent Law.  She added that the judicial review of administrative decisions was regulated by the Law 
on Administrative Dispute (RM OG No. 60/03), and that any party who found his rights had been 
violated by the administrative decision, including an y decision relating to the compulsory licence, had 
the right to initiate the proceedings before the Admi nistrative Court and request the judicial review of 
the legal validity of such a decision.  
236. With respect to Article 52 of the Patent Law, the representative of Montenegro said that this 
Article reflected the provisions of Article 31(b) of the WTO TRIPS Agreement and that exceptions 
provided in Article 52 were clearly "cases of pub lic non-commercial use".  She also added that 
Article 54 should be read in conjunction with ot her provisions on compulsory licensing, notably 
Articles 49 to 51 of the Patent Law, whereby all of the conditions required by Article 31 of the 
WTO TRIPS Agreement were incorporated.  Compulsory licence referred to in Article 54 was a 
specific kind of compulsory licence applicable to new plant varieties/plant breeders.  Article 54 WT/ACC/CGR/38 
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 provided for the specific rules that applied in addition to those provided for in Articles 49 to 51.  
In her view, Montenegrin rules on compulsory licensing complied with Article 31 of the WTO TRIPS Agreement. 
237. In reply to a question if Montenegro's Patent Law ensured an opportunity for judicial review 
of any decision to revoke or forfeit a patent as re quired by Article 32 of the WTO TRIPS Agreement, 
the representative of Montenegro stated that Articles 73 and 74 of the Patent Law prescribed 
nullification of a registered patent before the comp etent Court.  A party unsatisfied with the Court's 
decision had a right to appeal through legal remedies, according to Article 40 of Law on Administrative Dispute (RM OG No. 60/03). 
- Plant variety protection  
238. The representative of Montenegro said plant varieties were protected under the Law on 
Protection of Varieties of Agricultural and Forest Plants (FRY OG No. 28/00).  This Law, however, 
did not meet international standards.  A new UP OV-compliant Law on Protection of Plant Varieties 
had therefore been adopted (RM OG No. 48/07; OG MNE No. 48/08).  The new Law regulated the 
rights and obligation of holders of breeders' rights and the procedures for protection of plant varieties.  
The Law was applicable to all new, distinct, unifo rm, and stable plant genera and species designated 
by an appropriate denomination.  Protection was granted for 25 years from the date the breeder's 
rights had been granted - 30 years for trees and wines.  The new Law guaranteed the application of national treatment to foreign nationals.  She c onfirmed that the new Law provided for the legal 
framework for protection of plant varieties in a ccordance with the International Convention for the 
Protection of New Varieties of Plants 1991 and w as fully harmonized with the UPOV Convention.   
- Layout designs of integrated circuits  
239. The representative of Montenegro said that layo ut designs of integrated circuits were 
protected under the Law on Protection of Topographi es of Integrated Circuits (SM OG No. 61/04).  
Applications for registration had to  be filed with the Union Intellectual Property Office (MIPO as of 
19 July 2008).  Rights arose as of the filing date or  the date of first commercial use anywhere in the 
world, whichever was first, and ceased at the end of the 10 calendar year from the date the layout design of integrated circuits had been created.  In  response to a question, she added that the Law did 
not provide for interim measures.  A new Law on the Protection of Topographies of Integrated Circuits (OG MNE No. 75/10) had been adopted.   
- Requirements on undisclosed information,  including trade secrets and test data  
240. The representative of Montenegro said that th ere was no specific law protecting undisclosed 
information.  Business secrets were protect ed under the Law on Business Companies (RM OG 
No. 06/02), the Criminal Code (RM OG Nos. 70/03 and 13/04), the Law on Protection of Varieties of 
Agricultural and Forest Plants (FRY OG Nos. 24/98 and 26/98), the Law on Protection of Topographies of Integrated Circuits (SM OG No. 62/04), the Law on Medicines (RM OG No. 80/04) 
and the Law on Medical Devices, but these laws did not fully meet the requirements of the 
WTO TRIPS Agreement relating to undisclosed information.  A Law on Protection of Undisclosed Information (OG MNE Nos. 16/07 and 73/08), which was designed to protect undisclosed information 
in conformity with Article 39 of the WTO TR IPS Agreement, had therefore been adopted.  
She confirmed that this Law provided for a period of exclusivity that ensured protection of undisclosed test or other data relating to pharmaceutical and agricultural chemicals from reliance by 
unauthorized third parties.   WT/ACC/CGR/38 
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 241. Having reviewed the Law on Protection of Undisclosed Information, a Member noted that 
Article 9.3.1 seemed to extend the exception beyond that allowed for in Article 39.3 of the WTO TRIPS Agreement.  This Member also asked M ontenegro to clarify whether Article 9.5 covered 
agricultural chemical products.  In response, th e representative of Montenegro said that her 
Government had amended Article 9. 3.1 of the Law on Protection of Undisclosed Information to bring 
it into conformity with Article 39.3 of the WTO TR IPS Agreement.  She confirmed that Article 9.5 
covered agricultural chemical products.   
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  
242. The representative of Montenegro said that abuse of patent rights, i.e. refusal to grant a 
licence or the setting of unreasonable licensing cond itions, could result in compulsory licensing.  
She added that the Law on Protection of Comp etition (RM OG No. 69/05) included provisions on 
measures against unfair competition, monopolistic activities and limitati on of the market (Article 2). 
- ENFORCEMENT  
- Civil judicial procedures and remedies  
243. The representative of Montenegro said that civ il judicial procedures and remedies related to 
intellectual property were governed by the Law on Civil Procedures (RM OG Nos. 22/04, 28/05 and 
76/06) and Montenegro's intellectual property laws .  Civil courts had jurisdiction over civil 
proceedings.  However, when both parties were legal persons or entrepreneurs, or when the disputes 
arose from a commercial activity, the case was brought  before the Commercial Court.  Disputes 
involving a natural person or arising from a non-co mmercial activity were handled by the Basic 
Court.   
244. Courts had the authority to order production of evidence; award damages; issue injunctions to 
prevent further violation; and order seizure, d estruction or alteration of infringing goods, and 
materials and implements used in the creation of infringing goods.  Right holders' requests to destroy 
or alter infringing goods or materi als and implements were  always granted.  The representative of 
Montenegro noted, however, that the Law on Protecti on of Topographies of Integrated Circuits did 
not contain any provision on destruction or alte ration of infringing goods, and materials and 
implements used in their creation.  She added that  pursuant to paragraph 4 of Article 177 of the Law 
on Copyright and Related Rights, the plaintiff could, instead of requesting destruction or alteration of 
the infringing goods, ask that the goods be handed over to him.   
245. Damages were determined on the basis of direct  losses, including any lost profit, taking into 
account, in particular, the remuneration that would have been payable had the right been lawfully 
used.  When filing a case, the plaintiff had to sp ecify the amount of damages and submit evidence to 
support the claim.  If the defendant objected to th e proposed amount, damages were calculated by an 
expert appointed by the Court.  She noted that the defendant had to submit evidence to support its 
objection.  The expert's review was not triggered sole ly by the defendant's sole conclusory objection.  
She confirmed that compensatory damages could include attorney's fees.  Asked whether 
Montenegro's legislation provided for the indemnifica tion of the wrongfully or restrained defendant in 
accordance with Article 48 of the WTO TRIPS Agreemen t, she noted that pursuant to Article 154.1 of 
the Law on Contracts and Torts (SFRY OG Nos. 29/78, 39/85, 45/89 and 57/89; FRY OG Nos. 31/93, 22/99, 23/99, 35/99 and 44/99) any person having caused an injury was required to pay compensation for such injury, unless this person proved that he/she was not guilty.   
246. Right holders could claim pre-established damages in case of infringement involving 
copyright and related rights, patents, trademar ks, and undisclosed information and trade secrets WT/ACC/CGR/38 
WT/MIN(11)/7 Page 68 
 
 
 (Article 178 of the Law on Copyright and Relate d Rights, Article 93.2 of the Law on Patents, 
Article 57.3 of the Law on Trademarks, Article 56 of the Law on Legal Protection of Design, and 
Article 27.4 of the Law on Protection of Topographi es of Integrated Circuits).  In the event of 
intentional infringement or infringement by gro ss negligence, pre-established damages could be 
claimed up to three times the amount of "usual remune ration" that would have been paid had the right 
been used lawfully.  "Usual re muneration" was understood as the amount payable by the user of the 
right to the right holder for the lawful use of the right in the normal course of trade (retail price, 
licence fee or the like).   
247. Asked whether Montenegro's legislation permitted the court to order the defendant to provide 
information about third parties related to an infri ngement or to hand over documents relating to the 
infringement pursuant to Article 47 of the WTO TRIP S Agreement, the representative of Montenegro 
noted that, in her view, Article 47 did not oblige Me mbers to give judicial authorities the power to 
order an infringer to inform the right holder of the identity of third persons involved in the production and distribution of infringi ng goods and services.  Nonetheless, such a provision had been included in 
the Law on Copyright and Related Rights (Article 185) and her Government intended to amend the 
legislation on trademarks and patents along the sam e lines. In response to a question, she confirmed 
that Montenegro's legislation was drafted with a vi ew to compliance with the general obligations laid 
down in Article 41 of the WTO TRIPS Agreement. 
248. The representative of Montenegro confirmed th at civil judicial procedures and remedies 
related to intellectual property were  now also governed by Montenegro's newly adopted IP legislation: 
the Trademark Law (Articles 51 to 59); the Patent  Law (Articles 76 to 85); the Industrial Design Law 
(Articles 43 to 55); the Law on the Protection of T opographies of Integrated Circuits (Articles 13 
to 15); and the Copyright and Related Rights Law (Articles 183 to 195).  She added that second 
instance administrative procedure was provided for under the Trademark Law and Industrial Design Law.  She noted, however, that second administrative procedure would also be covered in the ongoing 
changes and amendments to Montenegro's Patent La w.  The Ministry of Economy was responsible for 
the second instance administrative procedure.  Cr iminal legal procedure for the protection of 
intellectual property rights was regulated in Articl es 233 to 238 and in Article 271 of the Criminal 
Law of Montenegro (RM OG Nos. 70/03, 13/04, 47/06; OG MNE Nos. 40/08, 25/10 and 32/11).   
- Provisional measures  
249. The representative of Montenegro said th at provisional measures were governed by 
Articles 182 to 184 of the Law on Copyright and Rela ted Rights; Articles 92, 94 and 95 of the Law on 
Patents; Articles 57 and 61 to 64 of the Law on Trademarks; Articles 60 to 63 of the Law on Legal 
Protection of Design; Articles 60 to 64 of the Law on Indications of Geographical Origin; Articles 14 
and 17 of the IPR Enforcement Law; Article 271 of  the Law on Civil Procedures; and the Law on 
Execution Procedures (RM OG No. 23/04).  Courts could, upon request of the right holder and 
presentation of credible evidence of an imminent or actual infringement, order provisional measures 
to prevent infringement or to preserve relevant ev idence.  Similar provisions had been included in the 
Law on Protection of Undisclosed Information. 
250. Provisional measures included seizure, removal from channels of commerce of infringing 
goods, and injunctions prohibiting the continuation of  actions that could lead to infringement.  
Inspection or rooms, books, documents, databases, and examination of witnesses and experts were 
also permitted.  Provisional measures could be requested prior to an action being filed for 
determination on the merits of a claim.  Pursuant  to Article 64 of the Law on Trademarks, the court 
could order an applicant to deposit a security in th e event the request was found to be groundless - no 
such provision had been included in the Law on Copyright and Related Rights.  If the court 
considered the evidence presented to support a reque st credible enough, provisional measures could  WT/ACC/CGR/38 
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 be ordered within a few weeks - or days if circumstances permitted.  Provisional measures could be 
ordered inaudita altera parte  in the case of copyright and trademark infringement actions if there was 
a demonstrable risk that pertinent evidence might be destroyed or impossible to obtain at a later stage, 
and in the case of irreparable harm to the right holder as required in Article 50.2 of the 
WTO TRIPS Agreement.  Where provisional measures had been adopted inaudita altera parte , the 
parties affected were given notice, in accordan ce with Article 50.4 of the WTO TRIPS Agreement 
(Article 183.3 of the Law on Copyright and Relate d Rights, Article 62.3 of the Trademark Law, 
Article 61.3 of the Law on Protection of Design, Artic le 94.3 of the draft Patent Law, and Article 61.3 
of the draft Law on Indications of Geographical Indications).  Appeals of provisional measures did 
not stay the execution of a decision on provisiona l measures.  She confirmed that the Law on 
Litigation Proceedings and the Law on Enforcemen t Proceedings provided for the possibility of a 
review upon request of the defendant, including a right to be heard, as provided in Article 50.4 of the 
WTO TRIPS Agreement.  The representative of M ontenegro confirmed that, in her view, these 
provisional measures had been fully harmonized with the WTO TRIPS Agreement:  the Law on Legal 
Protection of Industrial Design (Artic les 47 to 50); the Trademark Law (Articles 56 to 59); the Patent 
Law (Articles 78 and 79), the Law on the Protec tion of Topographies of Integrated Circuits 
(Articles 13 to 15); and, the Copyright and Related Rights Law (Articles 189 to 191). 
- Administrative procedures and remedies  
251. The representative of Montenegro said that administrative procedures and remedies were 
regulated by Montenegro's Law on General Ad ministrative Procedure (RM OG No. 60/03).  
The authorities competent to take administrative ac tion in relation to infringement of intellectual 
property rights were the Union Intellectual Property Office (MIPO as of 19 July 2008) and Montenegro's Customs Administration.  Montenegro 's legislation did not pr ovide for a second-level 
administrative authority to review MIPO decisions.  However, all MIPO decisions could be appealed 
before the Administrative Court of Montenegro.  She added that first instance decisions of the 
Customs Administration could be contested before the Ministry of Finance.  Ministry of Finance 
decisions were subject to review by the Administrative Court of Montenegro.  
252. Asked to describe the circumstances in which administrative procedures and remedies were 
applicable rather than civil procedures and reme dies, the representative of Montenegro said that 
administrative procedures were applied to matters re lated to registration of intellectual property rights 
and border measures.   
- Special border measures  
253. The representative of Montenegro said that pursuant to the Regulation on Actions of the 
Customs Authority Applicable to Goods Suspect ed to be Infringing Goods (RM OG No. 25/05), 
customs authorities could, upon request of the right holder, suspend customs clearance of imported and exported goods and goods in transit suspected of violating intellectual property rights (Article 3).  
Requests for suspension of customs clearance had to be filed with the Customs Administration 
Headquarters, and be accompanied by a description of the goods sufficient to allow the customs 
authorities to recognize the goods, and a proof of the right holder's exclusive rights (Article 4).  Requests for suspension of customs clearance were subject to a €100 fee pursuant to the Decree on the 
Types, Amounts, and Manner of Payment of F ee for Services Rendered by Customs Authorities 
(RM OG No. 66/06).  The applicant could be request ed to provide a security equal to any costs 
incurred by the suspension of the goods (Article 8 of the Regulation).  Right holders had the right to 
inspect the suspected goods, provided such inspec tion took place in the customs premises and under 
customs supervision (Article 9).  In case of evidence of a  prima facie infringement, customs 
authorities could take  ex officio action (Article 11).  Customs authorities were required to inform the 
importer, exporter or owner of the goods, and th e right holder or his/her representative of the WT/ACC/CGR/38 
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 measures taken without delay (Articles 9.2 and 11 .2).  Decisions on the merit of the case were 
referred to court.  She confirmed that the mandate of customs authorities to take  ex officio action 
applied to all IP rights and to goods in transit.   She also confirmed that the right holder was required 
to provide adequate evidence for prima facie infringe ment to satisfy the competent authorities in an 
application for the suspension of release of infringing goods as required in Article 52 of the 
WTO TRIPS Agreement.  Article 13 provided for compensation of the importer or the owner in case of wrongful detention of the goods and Articles 14 and 15 for the destruction and disposal of 
infringing goods outside the normal channels of comme rce.  In response to a question, she added that 
the re-exportation of infringing goods in an unaltered state was not regarded as disposal outside the 
normal channels of commerce under Article 14.2.  She confirmed that all actions by customs 
authorities could be appealed, including  ex officio actions.   
254. Asked whether the importer had any rights in the process leading to a Customs 
Administration's decision, the representative of Mont enegro said that applications for suspension of 
customs clearance were submitted prior to importati on, while the actual importers of the suspected 
products were not known.  However,  importers were informed of the suspension decision immediately 
and were entitled to submit evidence to support their claim.   
255. Questioned about the personal use exemption foreseen in Article 1.2.3, the representative of 
Montenegro explained that this exemption was li mited to one copy only.  The Regulation on Actions 
of the Customs Authority Applicable to Goods Su spected to be Infringing Goods applied whenever 
more than one identical copy of a suspected product was imported, exported, or imported in transit.   
256. Asked whether Montenegro's legislation limite d the suspension time period to ten working 
days with a possible extension by another ten wo rking days in accordance with Article 55 of the 
WTO TRIPS Agreement, the representative of M ontenegro said that the Regulation had been 
amended in March 2008 to be brought  into conformity with Article 55 of the WTO TRIPS Agreement 
(OG MNE No. 16/08).   
- Criminal procedures  
257. The representative of Montenegro said that infri ngement of intellectual property rights could 
be liable to criminal prosecution pursuant to the Criminal Code, as amended on 3 August 2006 (RM OG No. 47/06), and Articles 19 to 26 of the IPR Enforcement Law.  Criminal procedures were 
administered by court.  The State prosecutor ha d the authority to take ex officio action.  
Penalties included fines ranging from €1,000 to €30, 000 and prison sentences of up to eight years.  
The type and level of penalty, including imprisonm ent, were determined by the court taking into 
account the specificities of each case.  She confir med that the Criminal Code provided for the 
confiscation, or confiscation and destruction of in fringing goods, and materials and implements used 
to commit the offence, regardless of the level us e.  Thus, the level of protection provided by 
Montenegro's Criminal Code exceeded the requirement  of Article 61 of the WTO TRIPS Agreement.   
258. In response to a question, she noted that Mont enegro's legislation did not prescribe the level 
of infringing activity required to initiate criminal  prosecution.  The level of infringement was, 
however, relevant for determining the sentence.  She noted that Montenegro's Penal Code clearly 
identified the types of intellectual property right s infringement and related criminal procedures and 
penalties.  In her view, Montenegro's legisla tion was in compliance with Article 61 of the 
WTO TRIPS Agreement. 
259. The representative of Montenegro stated that  Montenegro would a pply the provisions of 
the WTO Agreement on Trade-Related Aspects of Inte llectual Property Rights no later than the date  WT/ACC/CGR/38 
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 of its accession to the WTO, without recourse to an y transitional period.  The Working Party took 
note of this commitment. 
VI. POLICIES AFFECTING TRADE IN SERVICES  
260. The representative of Montenegro said that Mont enegro had traditionally been a net exporter 
of services.  Exports and imports of services had almost doubled in recent years, mainly due to the 
substantial increase in tourism services.  She pr ovided information based on the services sectoral 
classification list in document WT/ACC/CGR/3/Add.1,  Annex 7, and information on policy measures 
affecting trade in services in the format of document WT/ACC/5 in document WT/ACC/CGR/4 and Corrigendum 1.   
261. Montenegro's legislation did not impose any rest rictions on capital transactions affecting the 
supply of services, the total value of service transactions or assets, the total number of service operations, the total quantity of service output, or th e total number of natural persons that could be 
employed in a particular service sector.  The number of service suppliers was not subject to any limitation, but foreign persons were not allowed to  establish service companies involved in trade in 
weapons or located in some restricted areas (e.g. "frontier strip" and national parks).  
Some restrictions or requirements also existed re garding the type of legal entities that could be 
established:  branching by insurance companies was not currently permitted.  However, these 
restrictions would be lifted, as discussed below.   
262. She added that some service sectors, including banking, insurance, medical, educational and 
transport services, were subject to licensing.  She provided a list of State and non-State bodies 
responsible for issuing service licenses in Tables 11(a)  and 11(b).  Licensing of charter road transport 
was subject to reciprocity.  In addition, foreign persons employed in a branch office or a business entity subject to a business co-operation Agreement; foreign persons engaged in educational activities 
on national and ethnic minorities' languages; sport professionals; and husbands, wives and children of 
a foreign person with a permanent residence permit were delivered work permits in accordance with 
international Agreements.   
263. In response to a specific request, the representa tive of Montenegro confirmed that in services 
sectors covered by specific commitments, monopoly and exclusive service suppliers rights currently exist only in respect of the following services sector s: sewage services, rail transport services, services 
related to air transport (airports ) and public health services.  The laws providing for the above 
monopoly and exclusive service suppliers rights were  the following:  Law on Public Utilities, Law on 
Railways, Law on Air Traffic, Law on Environm ent Protection, and Law on Primary Health 
Protection (National Health System).  Should Mo ntenegro have the need to extend monopoly and 
exclusive service suppliers rights beyond the above -mentioned services sectors it shall follow the 
appropriate procedures in accordance with Artic le VIII of the General Agreement on Trade in 
Services. 
264. Responding to specific requests of a Member, the representative of Montenegro confirmed 
that for the services included in Montenegro's Schedule of Specific Commitments Montenegro would 
ensure that its licensing procedures and conditions would not act as independent barriers to market 
access.  She further confirmed, in particular th at, from the date of accession:  (i) Montenegro's 
licensing procedures and conditions would be publishe d prior to becoming effective; (ii) Montenegro 
would specify reasonable timeframes for the review and decision by all relevant authorities in 
Montenegro's licensing procedures and conditions; (iii) applicants would be able to request licensing 
without individual invitation; (iv) any fees char ged, which were not deemed to include fees 
determined through auction or a tendering process,  would be commensurate with the administrative 
cost of processing an application; (v) the competen t authorities of Montenegro would, after the receipt WT/ACC/CGR/38 
WT/MIN(11)/7 Page 72 
 
 
 of an application, inform the applicant whethe r the application was considered complete under 
Montenegro's domestic laws and regulations and in the case of incomplete applications, would 
identify the additional information required to comple te the application and provide an opportunity to 
rectify deficiencies; (vi) decisions would be taken pr omptly on all applications; (vii) if an application 
was terminated or denied, the applicant would be in formed in writing and without delay of the reasons 
for such action.  The applicant would have the pos sibility to resubmit, at his/her discretion, a new 
application addressing the reasons for termination or denial; and (viii) in case examinations were held 
for the licensing of professionals, such examinations  would be scheduled at reasonable intervals.  
The Working Party took no te of these commitments. 
265. In addition, the representative of Montenegro confirmed that, from the date of accession, 
Montenegro would:  (i) publish in advance any re gulations or other implem enting measures of general 
application, pertaining to or affecting trade in ser vices, that it proposed to adopt, the purpose of the 
regulation or other implementing measure, the eff ective date of these measures, and the scope of 
services or activities affected; (ii) provide inte rested persons and other Members a reasonable 
opportunity to comment on such proposed regulation or other implementing measure; and (iii) allow 
reasonable time between publication of the final regulation or other impl ementing measure and its 
effective date.  The Working Part y took note of these commitments. 
266. In addition, the representative of Monteneg ro confirmed that, upon accession, Montenegro 
would publish a list of all organizations that were responsible for authorizing, approving or regulating 
service activities for each service sector, and would p ublish in the official journal, upon accession, all 
of its licensing procedures and conditions.  The Working Party took note of these commitments.  
267. The Government of Montenegro granted a numbe r of subsidies in the form of incentives for 
bus, air, rail or ship transport re lated to tourism; preferential interest rates for credits granted by 
commercial banks to the tourism sector; and partia l reimbursement of regist ration costs for private 
accommodation to stimulate the development of tourism (Law on Tourism, RM OG Nos. 32/02, 
41/02, 45/02, 38/03, 11 /04, 31/05 and 13/07).  These subsidie s were granted to both domestic 
providers and foreign providers registered at th e Central Register of the Commercial Court in 
accordance with the Law on Business Entities.  Some  tax exemptions and reductions were also 
granted under the Law on Environment to service providers for the use of clean technologies and recycling (RM OG Nos. 12/96, 55/00 and 80/05).  She added that the fees imposed on foreign 
producers of films and TV series without a M ontenegrin partner had been abolished on 
23 November 2006 (amendments to the Law on Ci nematography RM OG Nos. 45/93 and 27/94).  
268. Legal services were regulated by the new Montenegrin Law on Legal Services 
(RM OG No. 79/06).  Pursuant to this Law, which had entered into force in January 2007, foreign 
lawyers could freely provide consultancy services  on international law, domestic law and third 
countries' law, but other legal services, including representation before administrative and judicial 
tribunals was subject to reciprocity, i.e. foreign lawyers could provide these other legal services only 
if they were citizens of the countries allowing lawyers from Montenegro to provide identical legal services in these countries.  The representative of M ontenegro confirmed that conditions for market 
access with respect to legal services would not be more restrictive subsequent to the accession.  
The Working Party took note of this commitment.  
269. The telecommunications sector was regulated by the Law on Electronic Communications 
(OG MNE No. 50/08), which had been adopted by the Parliament on 19 August 2008.  An Agency for 
Telecommunications and Postal Services had been  established in March 2001 as an independent 
regulatory Body.  The Agency was responsible for promoting competition and access to networks, 
issuing licenses to operators, and regulating ta riffs.  Telekom Montenegro was the leading 
telecommunications operator in Montenegro.  Telekom Montenegro had been created in  WT/ACC/CGR/38 
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 December 1998 following the sp lit of the State-owned PTT M ontenegro into postal and 
telecommunication services.  Telekom Montenegro ha d been fully privatized in March 2005, when 
the State had sold all its remaining shares  (51.1 per cent) to Matav (the Hungarian 
telecommunications company, owned by German Te lecom).  Telekom Montenegro had been granted 
a monopoly over fixed telecommunications until 31 December 2003.  All restrictions on foreign 
investment in this area had since then been elim inated.  Three companies, ProMonte, Monet, and 
MTel, provided mobile services in Montenegro.   
270. A Law on Postal Services had been passed in July 2005 (RM OG No. 46/05).  Under the Law, 
the public postal operator Posta Montenegro had ex clusivity over the collection, transportation and 
delivery of letters up to a certain weight and value;  the collection, transportation and disbursement of 
money orders; and the collection, tr ansportation and delivery of court mail and official letters related 
to administrative or judicial proceedings.  Other universal postal services could be provided by any 
domestic or foreign operator established in Monteneg ro as a legal entity, duly licensed by the Agency 
for Telecommunications and Postal Services. 
271. Insurance services were regulated by the Law on Insurance (RM OG Nos. 78/06 and 19/07).  
The Law provided for the establishment of a new Insurance Supervision Agency as an independent regulatory Body.  The Council of the Agency had b een appointed on 3 July 2007, and the Parliament 
had approved the Agency's statute, financial plan  and programme in December 2007.  The Agency 
had started operating but would only be fully capable  of performing its functions by the end of 2011, 
at which time current restrictions on branch ing by insurance companies would be lifted .  Insurance 
services falling under compulsory insurance coul d be provided exclusively by the insurance 
companies licensed in Montenegro, except for compulsory insurance of  owners or users of maritime 
vessels for third party liability, which would be permitted for supply by insurers licensed abroad, 
ten years after the date of accession.  Foreign in surance companies were not subject to any other 
restrictions.  She confirmed that all insurance comp anies could reinsure abroad.  She added that a new 
Law on Banks had been enacted (OG MNE No. 17/08).  Under this Law, foreign banks were allowed 
to set up subsidiaries, branch offices or representati ve offices in Montenegro.  Representative offices 
could only perform preparatory activities, such as market research; they could not provide banking services.  The establishment of banks and representa tive offices was subject to the approval of the 
Central Bank of Montenegro.  She confirmed that foreign and domestic bank s were subject to the 
same requirements.  Asked whether Montenegro  intended to explicitly authorize branches and 
representative offices for foreign insurance compani es as it had done for banks, the representative of 
Montenegro answered affirmatively, but noted that  given the level of development of the insurance 
market, a transitional period was necessary before further liberalization c ould be carried out.  
Supervision, in particular, had to  be strengthened.  A number of m easures were planned in the lead up 
to 2011 before the Insurance Supervision Agency  would become fully operational, including, the 
negotiation of memoranda on tec hnical cooperation with other regulatory bodies in the region, 
intensive training of personnel, a nd the adoption of by-laws require d for the implementation of the 
Law on Insurance.  Once branching by insuran ce companies was permitted, she confirmed that 
Montenegro would not impose seasoning or other requirements on firms which may open branches. 
272. Montenegro's specific commitments on services  are contained in the Schedule of Specific 
Commitments on Services (documen t WT/ACC/CGR/38/Add.2) annexed to  Montenegro's Protocol of 
Accession to the WTO. WT/ACC/CGR/38 
WT/MIN(11)/7 Page 74 
 
 
 VII. TRANSPARENCY 
- Publication of information on trade 
273. The representative of Montenegro confirmed that  all laws and regulati ons were published in 
the Official Gazette of Montenegro immediately after their adoption.  No legal act of general 
applicability could enter into force before being pub lished in the Official Gazette.  As such, from the 
date of accession, all laws, regulations, decrees, j udicial decisions and administrative rulings of 
general application related to trade in goods, ser vices or TRIPS would be published promptly in a 
manner that fulfils WTO requirements, and no law or  regulation related to in ternational trade would 
become effective prior to such publication in the O fficial Journal.  She further confirmed that upon 
accession Montenegro would post the contents of current  and past editions of the Official Journal on 
the Government website and keep them current.  In  addition, all regulations and other normative acts 
or measures pertaining to or affecting trade in g oods, services, or TRIPS would be published promptly 
in a single official source, and that no such regulation or other normative act or measure would 
become effective or be enforced prior to such pu blication.  She further confirmed that within two 
years of accession Montenegro would establish or desi gnate an official journal or website, published 
or updated on a regular basis and readily available to WTO Members, and individuals and enterprises 
thereof, dedicated to the publication of all regulat ions and other measures pertaining to or affecting 
trade in goods, services, and TRIPS prior to enact ment.  She further confirmed that Montenegro 
would provide a reasonable period,  i.e., no less than 30 days, for comment to the appropriate 
authorities before such measures are implemented, except for those regulations and other measures 
involving national emergency or security, or for which the publication would impede law 
enforcement.  The publication of regulations and ot her measures related to trade in goods, services or 
TRIPS would, where possible, include the effectiv e date of these measures and list the products and 
services affected by the particular measure, identifie d by appropriate tariff line and classification.  
The Working Party took no te of these commitments. 
- Notifications 
274. The representative of Montenegro confirmed that, unless otherwise provided for in this 
Report, upon entry into force of the Protocol of  Accession, Montenegro would submit all the initial 
notifications required by any Agreement constituting part of the WTO Agreement.  Any regulations 
subsequently enacted by Montenegro which gave  effect to the laws enacted to implement 
any Agreement constituting part of the WTO Agreem ent would also conform to the requirements of 
that Agreement.  The Working Party took note of these commitments.  
VIII. TRADE AGREEMENTS  
275. The representative of Montenegro said that th e Republic of Montenegro was a party to a 
number of bilateral trade Agreements on goods, servi ces, and avoidance of double taxation; bilateral 
investment promotion Agreements; bilateral la bour-related Agreements; and multilateral economic 
co-operation Agreements.  She provided a list of these Agreements in document 
WT/ACC/CGR/3/Add.1, Annex 8.  The State Union of  Serbia and Montenegro had also signed and 
ratified eight bilateral free trade Agreements (FTAs)  - seven with Montenegro's South-East European 
neighbours, i.e. Albania, Bosnia and Herze govina, Bulgaria, Croatia, FYROM, Moldova, and 
Romania, and one with the Russian Federation.   The FTAs signed with Albania, Bosnia and 
Herzegovina, Bulgaria, Croatia, FYROM, Moldova,  and Romania were replaced by the Central 
European Free Trade Agreement (CEFTA) 2006.  Th e Agreements with Bulgaria and Romania had 
since then been abolished, following Bulgaria's  and Romania's accession to the European Union.  
CEFTA 2006 now comprised a multilateral free trad e agreement between Albania, Bosnia and 
Herzegovina, Croatia, FYROM, Moldova, Monten egro, Serbia and UNMIK/Kosovo.  CEFTA 2006  WT/ACC/CGR/38 
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 entered into force in Montenegro on 26 July  2007.  She said that Montenegro and the 
Russian Federation were negotiating Amendments to the Protocol of the existing FTA which entered 
into force in May 2001.  These negotiations were in th e final stages and were expected to be finalized 
by the end of 2011.  The Russian Federation, th e Republic of Belarus a nd the Republic Kazakhstan 
had formed a Customs Union (CU) on 1 January 2010;  therefore, Montenegro was also negotiating a 
free trade agreement with all three CU parties.  She further added that Montenegro signed free trade 
agreements with the EU, the EFTA, the CEFTA, th e Russian Federation, Turkey and Ukraine.  
Upon Montenegro's independence, Montenegro's Pa rliament had adopted a resolution whereby all 
international Agreements signed by the State Un ion would continue to apply in Montenegro.  
She noted that Montenegro was not a member of a ny customs union.  In response to a question, she 
added that Montenegro did not grant GSP treatment to any of its trading partners.   
276. The negotiation of bilateral free trade Agreem ents among South-East European countries was 
based on the Memorandum of Understanding on Tr ade Liberalization and Facilitation signed on 
27 June 2001 by the ministers of foreign trade of Albania, Bosnia and Her zegovina, Bulgaria, Croatia, 
FYROM, Moldova, Romania, and Serbia and Monteneg ro under the auspices of the Stability Pact for 
South-East Europe.  The Memorandum spelled out the basic principles to be included in each FTA, including the elimination of export duties and taxes upon entry into force of the FTAs; the abolition of 
import duties and taxes for at least 90 per cent of the value of trade between the contracting parties - elimination upon entry into force of the FTA for a majority of products and over a six-year period for the remaining goods covered by the FTA; the remova l of WTO-inconsistent qu antitative restrictions - 
exemptions had to be selective and limited in  time; the application of transparent and 
non-discriminatory measures in the area of public pr ocurement, Government aid and State monopoly; 
the simplification of customs procedures; the harmon ization of the methods for collecting statistical 
trade data; the harmonization of SPS measures with WTO and other relevant international 
organizations' rules; greater cooperation on TBT i ssues; the harmonization of local tax and banking 
legislation with EU regulations; the implementation of intellectual property rights in compliance with 
WTO standards; the liberalization of trade in services; and compliance of FTAs provisions on implementation of antidumping, countervailing, and safeguard measures with WTO rules.  A total of 
28 bilateral free trade Agreements had been ne gotiated, seven of which involved Montenegro. 
All these Agreements were based on WTO rules and principles.   
277. In accordance with the bilateral free trade Agreements with Albania, Bosnia and 
Herzegovina, Croatia, FYROM, and Moldova, Montenegro's trade in industrial goods with these 
countries had been fully liberalized on 1 January 2007.  Import duties on most agricultural products had been either eliminated or lowered, depending on the sensitivity of the product.  Particularly 
sensitive agricultural products were subject to annua l duty-free or low-duty quotas.  Imports in excess 
of the agreed quotas were subject to normal cust oms duties.  She provided a detailed description of 
these Agreements and information on trade with  South-East European countries in document 
WT/ACC/CGR/3, pages 104 to 112.  She added th at an Agreement on Amendment and Accession to 
the Central Free Trade Agreement (CEFTA 2006) ha d been signed on 19 December 2006 by Albania, 
Bosnia and Herzegovina, Bulgaria, Croatia, FYROM,  Moldova, Montenegro, Romania, Serbia, and 
UNMIK.  CEFTA 2006 covered a number of areas not  dealt with in the bilateral free trade 
Agreements, including services, intellectual propert y, government procurement and investment.  
CEFTA 2006 had entered into force on 26 July 2007 in Albania, UNMIK/Kosovo, Montenegro, 
FYROM, and Moldova; in August in Croatia; in September in Serbia; and in November in Bosnia and 
Herzegovina.  
278. The bilateral free trade Agreement with the Russian Federation had been signed on 
28 August 2000 and ratified on 9 May 2001.  The Agre ement provided for the gradual elimination of 
import duties, charges, and other equivalent me asures over a five-year period - however, as of 
January 2008, trade with the Russian Federation had not been fully liberalized.  The Agreement also WT/ACC/CGR/38 
WT/MIN(11)/7 Page 76 
 
 
 included provisions on the non-discriminatory applicati on of SPS measures; the application of rules of 
origin in accordance with the legislation of the importing country; the re-exportation of goods originating in the customs territory of the othe r contacting party - non-sanctioned re-exportation was 
prohibited; the implementation of anti-dumping, c ountervailing and safeguard measures in accordance 
with WTO rules; the protection of intellectual pr operty rights in accordance with the conventions to 
which both parties were signatories; transfers and payments - which should be free from any 
restriction; and special procedures for applying protective measures and measures for  balance-of-payment purposes for limited duration.   
279. She added that a Stabilization and Associati on Agreement (SAA) with the European Union 
had been initialled in March 2007.  The Agreemen t had been signed in October 2007 and the Law on 
the Ratification of the Stabilization and Associa tion Agreement between the European Communities 
and their Member Countries and the Republic of Montenegro had entered into force on 9 November 2007 (OG MNE No. 07/07-1).  The In terim Agreement had become effective in 
January 2008.   
280. The representative of Montenegro confirmed that Montenegro would comply with all 
WTO provisions, including Article XXIV of th e GATT 1994 and Article V of the GATS, when 
participating in preferential trade Agreements.  To this end, Montenegro would ensure that, from the 
date of accession, its preferential trade Agreements complied with the provisions of the WTO Agreement for notification, consultation and other requirements concerning free trade areas and 
customs unions.  She further confirmed that Mont enegro would, upon accession, submit notifications 
and copies of its Free Trade Areas and Custom Union Agreements to the Committee on Regional 
Trade Agreements (CRTA).  She further confirmed th at any legislation or regulations required to be 
altered under its trade Agreemen ts would remain consistent with the provision of the 
WTO Agreement and would, in any case, be notified to the CRTA during its examination of the same.  
The Working Party took no te of these commitments. 
CONCLUSIONS 
281. The Working Party took note of the explanations and statements of Montenegro concerning 
its foreign trade regime, as reflected in this Repor t.  The Working Party took note of the commitments 
given by Montenegro in relation to certain specifi c matters which are reprodu ced in paragraphs 33, 
36, 43, 56, 59, 77, 80, 83, 87, 93, 103, 114, 119, 123, 126, 129, 132, 135, 142, 154, 168, 170, 177, 182, 185, 192, 193, 259, 264, 265, 266, 268, 273, 274 and 280 of this Report.  The Working Party 
took note that these commitments had been incorporated  in paragraph 2 of the Protocol of Accession 
of Montenegro to the WTO.   
282. Having carried out the examination of the foreign trade regime of Montenegro and in the light 
of the explanations, commitments and concessions  made by the representative of Montenegro, the 
Working Party reached the conclusion that Montenegro be invited to accede to the 
Marrakesh Agreement Establishing the WTO under the provisions of Article XII.  For this purpose, 
the Working Party has prepared th e draft Decision and Protocol of Accession reproduced in the 
Appendix to this Report, and takes note of Mont enegro's Schedule of Concessions and Commitments 
on Goods (document WT/ACC/CGR/38/Add.1) and its Schedule of Specific Commitments on 
Services (document WT/ACC/CGR/38/Add.2) that are a nnexed to the Protocol.  It is proposed that 
these texts be adopted by the Eighth WTO Ministerial Conference when it adopts the Report.  
When the Decision is adopted, the Protocol of Accession would be open for acceptance by 
Montenegro which would become a Member 30 days after it accepts the said Protocol.  The Working 
Party agreed, therefore, that it had completed its work concerning the negotiations for the accession of 
Montenegro to the Marrakesh Ag reement Establishing the WTO.  WT/ACC/CGR/38 
 WT/MIN(11)/7 
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 ANNEX 1 
Laws, Regulations and Other Information Provi ded to the Working Party by Montenegro 
- Economic Reform Agenda;  
- Law "On Foreign Current and Capita l Operations" (RM OG No. 45/05);  
- Law "On Foreign Investment" (RM OG Nos. 52/00 and 36/07); 
- Decision "On Privatization Plan for 2008" (RM OG No. 17/08);  
- Law "On Abolishment of the Law 'On Social Price Control'" (RM OG No. 27/06);  - Law "On Protection of Competition" (RM OG Nos. 69/05 and 37/07);  - Decision "On the Promulgation of the Cons titution of the Republic of Montenegro" of 
12 October 2004; 
- Decree "On the Proclamation of the Law "On General Administrative Procedure" 
(RM OG No. 60/03) of 28 October 2003; 
- Decree "On Promulgation of the Law "On Administrative Disputes" (RM OG No. 60/03) of 
22 October 2003;  
- Law "On Foreign Trade" (RM OG Nos. 28/04 and 37/07); 
- Regulation "On Implementation of the Foreign Trade Law" (RM OG Nos. 52/04 and 44/07); - Law "On Tobacco" (RM OG Nos. 80/04 and 05/05; OG MNE No. 48/08); - Law "On Customs Tariff" applied fro m January 2006 (OG MNE No. 17/07);  
- Draft Law on Customs Tariff - Applied Ta riff Rates of the Republic of Montenegro 
(HS 2002);  
- Applied Tariff Rates of the Republic of Montenegro (HS 1996);  
- Customs Law, including amendments (RM OG Nos. 07/02, 38/02, 72/02, 21/03, 31/03, 29/05 
and 66/06; OG MNE No. 21/08); 
- Decree "On Implementation of the Customs Law" (RM OG Nos. 15/03 and 81/06;  
OG MNE No. 38/08); 
- Decree "On Implementation of the Customs La w, Rules of Origin and Customs Valuation 
(RM OG No. 15/03);  
- Decree "On the Types, Amounts and Manner of Payment of Fee for Services Rendered by 
Customs Authorities" (RM OG No. 04/07; OG MNE No. 47/08); 
- Law "On Excise Tax" (RM OG Nos. 65/01, 12/02 and 76/05; OG MNE Nos. 76/08 and 
50/09); 
- Law "On Excise Taxes", Provisions on Tobacco Products; 
- Law "On Value Added Tax" (RM OG Nos. 65/01, 12/02, 38/02, 72/02, 21/03, 76/05, 04/06 
and 16/07);  
- Decision "On Control List for Import and Export of Goods" (RM OG No. 44/04);  - Decision "On Control List for Export, Import and Transit of Goods" (RM OG No. 45/07; 
OG MNE No. 10/11); 
- Law "On Foreign Trade in Weapons, Military Equipment and Dual-use Goods" 
(SM OG No. 07/05); 
- Customs Law, Chapter Three, "Value of Goods for Customs Purposes"; - Decree "On Implementation of Customs Law", Part 3, "Origin of Goods"; and Part 4, 
"Customs Valuation of Goods"; 
- Non-Preferential Origin of Goods; Part 3 of Rules on Origin of Goods (RM OG No. 15/03);  
- List of Technical Regulations on Quality of  Food and Industrial Pr oducts Applied in the 
Republic of Montenegro; 
- Law "On Technical Requirements and Conformity Assessment of Products with Prescribed 
Requirements" (OG MNE No. 14/08); 
- Law "On Standardization" (OG MNE No. 13/08); 
- Law "On Accreditation" (SM OG No. 44/05) WT/ACC/CGR/38 
WT/MIN(11)/7 Page 78 
 
 
 - Decree "On Conditions for Application of T echnical Regulations of Other Countries and 
Records of Foreign Certificates of Conformity"; 
- D ecree "On Manner and Procedures of Assessm ent of Conformity of Products with 
Prescribed Requirements" (OG MNE No. 71/08); 
- D ecree "On Procedure of Notification in the Area of Technical Regulations, Standards and 
Conformity Assessment Procedures" (OG MNE No. 55/08); 
- Decree "On the Manner of Preparation and Adop tion of Technical Regulations and Technical 
Specifications and Register of Technical Regulations" (OG MNE No. 55/08); 
- Strategy for Improving the Quality Infrastructure in Montenegro, 2007; - "Food Safety Law" (RM OG No. 14/07); - Law "On Veterinary" (RM OG No. 11/04);  
- Edict "On Promulgation of the Veterinary Law" (RM OG No. 11/04);  
- Law "On Plant Health Protection" (RM OG No. 28/06);  - Draft Law "On Plant Protection Product" of December 2007; - Law "On Plant Protection Products"(OG MNE No. 51/08); - Law "On Fertilizers" (OG MNE No. 48/07); 
- Decree No. 01-961/2 "On Promulgation of  Fertilizer Law", dated 2 August 2007 
(RM OG No. 48/07); 
- Criteria for Establishing of Health Condition of the Crops and Facilities, Seeds, Nursery 
Plants and Planting Material; 
- Law "On Seed Material of Agricultura l Plants, promulgated on 20 April 2006" 
(RM OG No. 28/06); 
- Law "On Promulgation of the Law 'On Planti ng Material, promulgated on 20 April 2006'" 
(RM OG No. 28/06); 
- Decision "On Establishing the Accreditation Body of Montenegro" (RM OG No. 21/07); - Regulation "On the Procedure for Notificati on of Sanitary and Phytosanitary Measures" 
(RM OG No. 13/08); 
- Law "On Genetically Modified Organisms and related regulations" (RM OG No. 22/08);  
- Ordinance "On Undertaking the Measures to Pr event Introduction of the Animal Infectious 
Disease Bovine Spongiform Encephalopathy (BSE) in the Republic of Montenegro" (RM OG No. 23/05);  
- Decision "On the Level of Compensation for Vete rinary-Sanitary Control in the Trade Across 
the Border of the Republic of Montenegro" (RM OG No. 50/05) of 7 July 2005;  
- Law "On Free Zone" (RM OG No. 42/04);   
- Law "On Free Zones" (RM OG No. 11/07); - Law "On Employment and Work of Fore igners" (OG MNE Nos. 22/08 and 32/11); 
- Law "On Industrial Designs" (OG MNE No. 80/10); - Law "On Protection of Topographies of Integrated Circuits" (OG MNE No. 75/10); 
- Law "On Copyright and Related Rights" of 1 January 2005 (SM OG No. 61/04); 
- Law "On Cinematography" (RM OG No. 14/08);  - Law on Geographical Indications for the Fede ral Republic of Yugoslavia of 1 April 1995 
(FRY OG No. 15/95); 
- Law "On Indications of Geographical Origin" (OG MNE No. 48/08); 
- Law "On Indications of Geographical Origin" (SM OG No. 20/06); 
- Law "On Trademarks" of 1 January 2005 (SM OG No. 61/04; OG MNE No. 72/10);  - Law "On Patents" of 10 July 2004 (SM OG No. 15/04); - Law "On Patents" (OG MNE No. 66/08); - Law "On Legal Protection of Design" of 1 January 2005 (SM OG No. 61/04); - Law "On Protection of Topographies of Inte grated Circuits" of 1 January 2005 (SM OG 
No. 61/04); 
- Draft Plant Variety Protection Law (dated January 2006);   WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 79 
 
 
 - Law "On Plant Variety Protection" (RM OG No. 48/08);  
- Law "On Protection of Undisclosed Information" (RM OG No. 16/07); - Law "On Optical Discs" (RM OG No. 02/07);  - Law "On Enforcement of the Legislation that  Regulates Protection of Intellectual Property 
Rights" (RM OG No. 45/05); 
- Regulation "On Providing the Application of Intellectual Property Rights", dated 
20 September 2007 (RM OG No. 61/07); 
- Regulation "On Actions of the Customs Authority Applicable to Goods Suspected of 
Infringement of Intellectual Property Rights" (RM OG Nos. 25/05 and 16/08);  
- Penal Code of the Republic of Montenegro (Amendments Published in RM OG No. 47/06, on 
25 July 2006.  Effective as of 3 August 2006);  
- Penal Code of the Republic of Montenegro (RM OG No. 47/06), Criminal Offences Against 
Intellectual Property Rights (Articles 233 to 238, 271);  
- Law "On Banks" (OG MNE Nos. 17/08 and 44/10); 
- Law on Internal Trade Montenegro (OG MNE No. 49/08); 
- Law "On Medicines" (OG MNE No. 18/08); - Law "On Administrative Dispute" (RM OG No. 60/03); - Decree "On Type, Level and Manner of Charging Fees for Services Rendered by Customs 
Authority" (OG MNE No. 47/08); 
- Law "On Administrative Fees" - Consolidated Text; 
- Law Amending the Banking Law; 
- Central Bank of Montenegro Law; - Law "On Local Self-Government Financing"; - Decree Promulgating the Law "On Tax on Profit of Legal Entities (Law on Corporate Profit 
Tax)"; 
- Decree Promulgating the Law "On Tax on Inco me of Natural Persons (Law on Personal 
Income Tax)"; 
- Decree "On the Proclamation of the Fore ign Investment Law" (OG MNE No. 18/11); 
- Additional Protocol to the Agreement on Amendment of and Accession to the Central 
European Free Trade Agreement; 
- Law "On Amendments to the Law 'On Em ployment and Work of Foreigners'"; 
- Law "On Excise Taxes"; 
- Law "On the Protection of Topographies of Integrated Circuits"; - Law "On Legal Protection of Industrial Design"; - The Patent Law (OG MNE No. 66/08); - Decree "On the Promulgation of the Law 'On Trademarks'"; 
- Law "On Standardization" (OG MNE No. 13/08); 
- Law "On Technical Requirements for Products and Conformity Assessment"; - Decree "On Procedure of Notification in the Area of Technical Regulations, Standards, and 
Conformity Assessment Procedures"; 
- Decree "On Manner and Procedures of Assess ment of Conformity of Products with 
Prescribed Requirements" (OG MNE No. 71/08); 
- Decree "On Conditions for Application of T echnical Regulations of Other Countries and 
Records of Foreign Certificates of Conformity" (OG MNE No. 74/08); 
- Decree "On Manner of Preparation and Adopti on of Technical Regulations and Technical 
Specifications and Register of Technical Regulations" (OG MNE No. 55/08); 
- Enactment Promulgating the La w "On General Product Safety"; 
- Ordinance Promulgating the Law "On Metrology" (OG MNE No. 79/08);  
- Decree Promulgating the Law "On Business Organizations"; - Edict to Proclaim the Copyright and Related Rights Act, dated 25 July 2011; 
- The Customs Law; - Law "On Corporate Profit Tax"; WT/ACC/CGR/38 
WT/MIN(11)/7 Page 80 
 
 
 - Law "On Value Added Tax"; 
- Enactment on Proclamation of the Law "O n Tax on Turnover of Used Passenger Motor 
Vehicles, Vessels, Airplanes and Aircrafts, dated 24 September 2003; 
- Enactment Proclaiming the Law "On Tax Administration", dated 27 December 2001; 
- Decree on Proclamation of the Law "On Real  Estate Tax", dated 27 December 2001; 
- Decree on Promulgation of the Law "On Excise Taxes"; and - Law "On Free Zones".  
 
  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 81 
 
 
 ANNEX 2 
Table 5:  Administrative Fees and Charges 
Fees Level (€) 
Tariff No. 1:  
For claims, requests, petitions, proposals and other applications 5 
Tariff No. 22:  
For written decisions approving importing, exporting or transit of explosive substances and 
items, weapons and military equipment through the territory of the Republic, per tonne of 
freight 20 
Tariff No. 51:  
For a veterinary sanitary certificate on th e health status of export consignments 5 
Tariff No. 56:  
For a written decision determining the veterinary-sanitary requirements for importing 
consignments of animals and products, raw materials and waste of animal origin 60 
For a written decision determining the veterinary -sanitary requirements for the transportation 
of consignments of animals and products, raw materials and waste of animal origin 90 
For a written decision determining the veterinary -sanitary requirements for temporary imports, 
exports or transport of animals intended for spor ts events, fairs and exhibitions (horses, dogs, 
cats, birds, fish and similar) 60 
Tariff No. 57:  
For the issuance of approval for temporary imports of animals for breeding purposes and 
seeds and other plant reproductive organs 15 
Tariff No.58:  
For a written decision approving the importation of seeds, seedlings and planting material and 
determining the health status and variety of seeds, seedlings and planting materials being imported. 60 
Tariff No. 60:  
For the issuance of phyto-certificates for export and re-export of plant consignments 50 
For certificates on phytosanitary safety of seedlings and planting material in internal 
circulation 50 
Tariff No. 62:  
For written decisions on authorizing a legal pers on for testing and determining the quality of 
seeds being exported and issuing certificates on the quality of seeds and planting material 50 
For written decisions on the prohibition of imports of seeds and planting material 70 
Tariff No. 65:  
For the issuance of export certificates for pr oducts obtained through organic production 
methods 20 
Tariff No. 67:  
For written decisions on the issuance of license s for placing in circulation plant-protection 
means (pesticides) and plant-nourishment means (fertilizers) 70 
For written decisions on the renewal (revision) of licenses for placing in circulation plant-
protection means (pesticides) and plant-nourishment means (fertilizers) 70 
Tariff No. 68:  
For written decisions on approving the imports of plant-protection means (pesticides) and 
imports of active substances and concentrates for the production of pesticide end-products and 
plant-nourishment means (fertilizers) 70 
For certificates that plant-protection means (pestic ides) are not being produced in the Republic 20 
Tariff No. 69:  
For written decisions determining the fulfilment of  requirements by legal persons to place in 
circulation plant-protection means (pesticides) and plant-nourishment means (fertilizers) on 
wholesale and retail level 100 WT/ACC/CGR/38 
WT/MIN(11)/7 Page 82 
 
 
 Fees Level (€) 
Tariff No. 75:  
For written decisions approving placing in circulation of genetically-modified organisms and 
products derived from genetically modified organisms 50 
For written decisions determining the duration of the contained use, production and circulation 
of genetically modified organisms and products derived from genetically modified organisms 40 
Tariff No. 77:  
For licence for imports, exports or transit of e ndangered and protected species of wild flora 
and fauna, their developing forms and parts 100 
For licence for imports, exports or transit of genetic resources of wild flora and fauna, bio-
technology and genetically-modified organisms 100 
Tariff No. 82:  
For written decisions determining legal persons and entrepreneurs for the production and 
circulation of poisons, or legal persons for performing control of poisons 170 
Tariff No. 83:  
For an application for approval to place in circulation poisons for public hygiene use 40 
Tariff No. 84:  
For written decisions approving the imports, exports or transit of poisonous substances 
through the territory of the Republic 100 
Tariff No. 85:  
For licence to import substances which harm the ozone layer 150 
For written decisions approving the transportation of radioactive substances across the borders 
of the Republic 500 
Tariff No. 86:  
For approvals for the production or circulation of narcotics 150 
For licence for importation or exportation of narcotics 130 
For written decisions determining legal persons that may engage in the production or 
circulation of narcotics 150 
Tariff No. 87:  
For written decisions determining legal persons and entrepreneurs that may produce, engage 
in circulation or use sources of ionizing radiation 100 
Tariff No. 103:  
For a request for the inspection of a consignment (of food or Articles of general use) for the 
purpose of establishing health safety of goods being imported 5 
For written decisions confirming that the consignm ent referred to in th e preceding paragraph, 
with respect to health safety, conforms to the requirements prescribed in the Republic for such 
food products or products of general use 10 
Tariff No. 104:  
For a request for the issuance of a certificate on the quality of agricultural and food products 
being imported, or exported 5 
For written decisions establishing the quality of the products referred to in the preceding 
paragraph 50 
Tariff No. 105:  
For licenses for import, export and intermediary services of controlled goods 30 
For licenses for export and import of non-military ordnance 60 
Tariff No. 115:  
For cancelling an ATA carnet (regulation fee) 50 
Tariff No.116:  
For the issuance of a certificat e confirming that a motor vehicle fulfils technical requirements 
for transporting goods on the basis of a TIR carnet 50 
Tariff No. 117  
For appeals against written decisions issued by customs offices in an administrative procedure 
lodged by legal and natural persons 6 
  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 83 
 
 
 Table 6:  Products Subject to Excise Tax 
Tariff Code Description Amount of Excise Tax (rate) 
2402 20 10 00 
2402 20 90 00 2402 90 00 00 Cigarettes - Specific 10.00€ / 1000 pcs; 
and 
- Proportional 37% of their 
retail price. 
2402 10 00 00 
2402 90 00 00 Cigars and cigarillos 25.00€/kg. 
2403 10 10 00 
2403 10 90 00 Finely chopped tobacco 40.00€/kg. 
2403 10 90 00 Smoking tobacco 25.00€/kg. 
2203 
2206 00 39 00 2206 00 59 00 
2206 00 89 00 Beer €5 per alcoholic content by 
volume per hectolitre of beer. (Law of Amendments on the Law 
on Excise Taxes (OG MNE 
No. 73/10), amount of excise tax on beer in 2011 amounted to €3.5 
per hectolitre of beer.  In 2012, the 
amount of excise tax on beer will be the same) 
2204 21 
2204 29 
2205 10 10 00 2205 90 10 00 Table wines: 
1. With an alcoholic content exceeding 
1.2% vol but not exceeding 15% vol provided the quantity of alcohol 
contained in the final product is 
completely of fermented origin; and 
2. With an alcoholic content exceeding 
15% vol but not exceeding 18% vol provided the quantity of alcohol 
contained in the final product is 
completely of fermented origin and not enriched. €0 per hectolitre of table wine.   
 
 
2204 10 
2205 Sparkling wines: 
1. In bottles with "mushroom" stoppers 
imported or held in place under pressure of carbon dioxide of 3 or 
more bars; and 
2. With an alcoholic content exceeding 
1.2% vol but not exceeding 15% vol 
provided the quantity of alcohol 
contained in the final product is completely of fermented origin. €35 per hectolitre of sparkling 
wine. 
2204 2205 
2206 Other non-sparkling
 fermented beverages, 
other than beer and wine: 
1. With an alcoholic content exceeding 
1.2% vol but not exceeding 10%; and 
2. With an alcoholic content exceeding 
10% vol but not exceeding 15% vol 
provided the alcohol contained in the 
final product is completely of fermented origin. €0 per hectolitre of other 
fermented beverages. WT/ACC/CGR/38 
WT/MIN(11)/7 Page 84 
 
 
 Tariff Code Description Amount of Excise Tax (rate) 
2206 00 31 
2204 10 2204 21 10 
2204 29 10 
2205  Other sparkling fermented beverages 
1)  in bottles with "mushroom" stoppers 
imported or held in place under 
pressure of carbon dioxide of 3 or 
more bars; 
2)  with an alcoholic content exceeding 
1.2% vol but not exceeding 13% vol; 
3)  with an alcoholic content exceeding 
13% vol but not exceeding 15% vol, 
provided the quantity of alcohol 
contained in the final product is completely of fermented origin. €35 per hectolitre of sparkling 
wine  
2204 21 95 00 
2204 21 96 00 
2204 21 98 00 
2204 29 95 00 
2204 29 96 00 2204 29 98 00 
2205 10 90 00 
2205 90 90 00 2206 Medium alcoholic beverages: 
- With an alcoholic content exceeding 
1.2% vol but not exceeding 22%. €70 per hectolitre of medium 
alcoholic beverages. (Proposal of 
the Law on Amendments to the 
Law on Excise Taxes, which will 
apply from 1 January 2012, prescribes amount of excise duty 
on ethyl alcohol in an amount of 
€100 per hectolitre of medium alcoholic beverages.) 
2207, 2208 
2204, 2205, 2206 Ethyl alcohol: 
- With an alcoholic content exceeding 
1.2% whether or not it is constituent part of the product having different 
tariff code; 
- With an alcoholic content exceeding 
22%; and 
- Other alcoholic beverages containing 
ethyl alcohol whether or not in a solution, which are not covered by 
Articles 38 to 41 of this Law. €550 per hectolitre of pure 
alcohol. (Proposal of the Law on 
Amendments to the Law on Excise Taxes ,which will apply 
from 1 January 2012, prescribes 
amount of excise duty on ethyl alcohol in an amount of €650 per 
hectolitre of pure alcohol) 
2710 11 31 00 
2710 11 51 10 2710 11 51 90 
2710 11 59 00 
  
 
Petrol    
 €464/1,000 litre 
2710 11 31 00 
2710 11 41 00 
2710 11 45 00 2710 11 49 00 Unleaded petrol €459/1,000 litre 
 
2710 19 21 00 
2710 19 25 00 Kerosene used: 
- as motor fuel  
- for heating   
€156/1,000 litre 
€89.7/1,000 litre 
Customs tariff from  2710 19 41 to 2710 19 49 Gas oil used: 
- as motor fuel  
- as motor fuel for industrial and 
commercial purposes 
- for heating   
€370/1,000 litre 
€169/1,000 litre 
 €117/1,000 litre 
Customs tariff from   
2710 19 61 00 to        
2710 19 69 00  Heating oil €19.5/1,000 kg.  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 85 
 
 
 Tariff Code Description Amount of Excise Tax (rate) 
Customs tariff from   
2711 12 11 00 to  2711 19 00 00 
 Liquid petroleum gas used: 
- as motor fuel  - as motor fuel for industrial and 
commercial purposes 
- for heating  
€123.5/1,000 kg €58.5/1,000 kg  
 
€26/1,000 kg 
 
 
 
Intermediate Alcohol Beverages  
Article 41  
(1) Intermediate alcohol beverages are considered to be the products covered by the tariff code 
CN 22.04, 22.05 and 22.06 that are not comprised in Articles 38, 39 and 40 of this Law with the content of alcohol over 1.2 per cent volume and not exceeding 22 per cent volume. 
(2)  Exceptionally from Article 40 of this Law, in termediate alcohol beverages are considered to 
be: 
  1) all non-sparkling fermented beverages from Article 40, paragraph 1 of this Law, with 
the content of alcohol over 5.5 per cent volume that are not entirely of fermented origin; 
2)  all sparkling fermented beverages from Artic le 40, paragraph 2 of this Law, with the 
content of alcohol over 8.5 per cent volume that are not entirely of fermented origin. 
 
Ethyl alcohol  
Article 42  
Ethyl alcohol shall be considered to be: 
(1) the products covered by the tariff code CN  22.07 and 22.08 with alcohol content over 
1.2 per cent volume regardless if it makes a consti tuent part of the product which is covered by 
another tariff code; 
(2) products covered by the Tariff codes CN 22. 04, 22.05 and 22.06 with alcohol content over 
22 per cent volume; 
(3) other alcohol beverages containing ethyl alcohol whether in solution or not, which are not 
included in Articles 38 through 41 of this Law. 
 Explanation: 
The provisions of Article 42, paragraph 1, item 2 sti pulates that the ethyl alcohol shall be considered 
to be products of tariff code 2204 and 2205 with al cohol content over 22 per cent volume, while the 
intermediate alcoholic beverages, in accordance to Article 41, paragr aph 1, to be products of tariff 
code 2204 and 2205 containing alcohol over 1.2 per cent volume but not exceeding 22 per cent 
volume.  As these are the products with different al cohol content, the different excise tax applies.  
 
Products of tariff code 2207 and 2208 with an alcohol content exceeding 1.2 per cent volume and 
which are considered to be ethyl alcohol are not co vered by the provisions of Article 41 of the Law on 
Excise Taxes. WT/ACC/CGR/38 
WT/MIN(11)/7 Page 86 
 
 
 Table 8:  Imports Prohibited According to the Order on Ban of Import and Transit of Certain Plant 
Species and Determination of Quarantine Surv eillance for Certain Plant Species Imported for 
Growing Purposes and List of Plants Subject to Quarantine Surveillance 
I.  Prohibited Imports and Transit for Phytosanitary Reasons 
 
Item Type of plant Object of prohibition 
1. Plants from the genus Abies , Picea , 
Pinus Pseudotsuga , Tsuga  and Larix  
originating from France, Spain and 
non-European countries. The ban pertains to import of the plants and parts for 
propagation of these plants, except seeds and samples of graft-twigs and pollen originating from 
non-contaminated areas, an d imported by scientific 
institutions dealing in selection, introduction of new species, varieties, lines and hybrids or plant protection. 
2. Plants from the genus Castanea  and 
Quercus  from all countries and genus 
Ulmus  originating from the United States 
of America. The ban pertains to import of the plants as well as parts 
for propagation of these pl ants, except the seed of 
Quercus  and Ulmus  and samples of the seed Castanea  
originating in non-contaminated areas and imported by 
scientific institutions dealing in selection, introduction 
of new species, varieties, lines and hybrids or plant protection. 
3. Plants form the genus Juniperus  
originating from the countries of Asia 
and North America. The ban pertains to the import and transit of plants as 
well as parts for propagation of such plants, except the 
seeds. 
4. Plants from the family Rosaceae  (genus 
Chaenomeles , Cydonia , Crataegus , 
Malus , Photinia , Prunus , Pyrus  and 
Rosa ) originating from the countries of 
Asia and North America. The ban pertains to import and transit of plants as well 
as parts for propagation of such plants, except the seeds 
and plants in the stage of dormancy without leaves and 
fruit (import is permitted in the stage of dormancy and 
quarantine surveillance is applied). 
5. Plants from the genus Populus  
originating from France, Spain and non-European countries and the genus 
Platanus  originating from the USA, 
France, Italy, Spain, Armenia and other countries where the quarantine harmful 
organism Ceratocystis fimbirata f. sp. 
platani  had been found. The ban pertains to import of plants as well as 
propagation parts of the respective plants, except the seeds and import of plant samples originating from 
non-contaminated areas, im ported by scientific 
institutions dealing in introduction of new species, varieties, lines and hybrids. 
6. Potato ( Solanum tuberosum  and Solanum 
spp.) originating from Mexico and 
countries of Central and South America. The ban pertains to import of potato for seed and 
consumption, including the wild or semi-cultivated 
clones, in particular tuber, plants with roots and parts of 
plants, except the real seed and cultures of tissues and samples originating from non-contaminated areas, and 
imported by scientific institutions dealing in 
introduction of new species, varieties, lines and hybrids. 
7. Coniferous wood from non-European 
countries with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in 
percentage of dry matter (designation K.D. "Kilndried" 
etc.) 
8. Oak wood genus Quercus originating 
from the USA, Russian Federation and 
Romania and chestnut wood genus Castenea originating from all countries, 
with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture expressed in 
percentage of dry matter. 
9. Wood from the genus Populus, Ulmus, 
Zelkova, Fraxinus and Tillia americana originating from non-European countries 
with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in percentage of dry matter.  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 87 
 
 
 Item Type of plant Object of prohibition 
10. Logs and timber of the wood genus 
Platanus from the USA, France, Italy, Spain, Armenia and other countries 
where Ceratosystis fimbriata f. sp. 
Platani was determined. The ban pertains to import of logs and timber. 
11. Wood bark under ordinal numbers 7, 8, 9 
and 10. The ban pertains to import of wood bark if in the 
country of origin no disinsection and disinfection by 
fumigation or fermentation applying the prescribed 
method was applied. 
12. Corn stalks and sorghum straw if 
originating from the countries of Africa. The ban pertains to import and transit of corn stalks and 
sorghum straw. 
13. Soil, compost and substratum mixed with 
soil or compost, with plants or without 
plants, originating from the non-
European countries. The ban pertains to import of soil, compost and mixed 
substratum for which no disinfection and disinsection 
has been performed. 
14. Plants from the genus Fragaria  
originating from non-European countries. The ban pertains to the import of plants, except for 
seeds and fruits. 
 
II. Plants Subject to Quarantine Surveillance 
Quarantine surveillance is prescr ibed for plants imported for propagation purposes as follows: 
1. Graft-twigs and pollen of the genus Abies, Picea, Pinus, Pseudotsuga, Tsuga  and Larix  and 
samples of the plant seed of genus Castanea  and Quercus  if the import is restricted under 
Ordinal No. 1 and 2 of Exhibit A12.3; 
2. The genus Abies, Picea, Pinus, Pseudotsuga, Tsuga  and Larix  originating from non-European 
countries; 
3. The genus Populus and Platanus if the import is restricted under the ordinal No. 5 of 
Exhibit A12.3; and 
4. Seed potato samples ( Solanum  spp.) if the import is restricted under the ordinal No. 6 of 
Exhibit A12.3. 
Quarantine surveillance of plants refe rred to in items 2. and 3. hereof  pertains to the entire live plant 
and their parts for propagation, except the seeds. WT/ACC/CGR/38 
WT/MIN(11)/7 Page 88 
 
 
 Table 11(a):  State Bodies with a Regulatory Role in Service Activities  
Body Role 
Central Bank of Montenegro Commercial bank licensing; approval of securities issuance 
and sale of large blocks of commercial bank shares, approval of the auditor chosen by the commercial bank. 
Ministry of Education and Sport Licensing authority for providing education services. 
Ministry Labour and Social Welfar e Issuance of work permits.  
Ministry of Health Issuance of approval s for compliance with health standards, 
supervision, and inspection. 
Ministry for Sustainable Development and Tourism  Licensing, classification, supe rvision, and inspection of 
tourism related services. 
Issuance of permits/licenses for fulfilment of environment 
standards, supervision and inspection. 
Ministry of Transportation and Maritime Affairs  Licensing of maritime inland transport related services. 
The Securities Commission Licensing for stock exchanges and other securities related 
activities (brokerage, dealing, investment management, and 
underwriting and investment consultancy). 
Ministry of Finance Licensing fo r accounting and auditing services. 
Ministry of Agriculture and Rural 
Development  Issuance of commercial fishing licenses, approval of hunting 
permits for foreign nationals. 
The Energy Regulatory Agency Issuance of licenses for the generation, transmission, 
distribution, supply and sale of electricity; for commercial 
transport; warehousing, distribution, sale and shipment of gas, oil and oil derivatives; for market operators, transmission and 
distributive networks. 
The Agency for Broadcasting Issu ance of broadcasting licenses. 
The Agency for Telecommunications and 
Postal Services Issuance of licenses for telecommunications and postal 
services and ensuring competition safeguards 
Insurance Supervision Agency Licensing for insurance services and supervision of the 
performance insurance business. 
  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 89 
 
 
 Table 11(b):  Non-State Bodies with a Regulatory Role in Service Activities  
Body Role 
The Bar Association Licensing (registration) of attorneys. 
The Association of Doctors Registration of medical doctors and dentists. 
The Association of Pharmacists Registration of pharmacists. 
The Association of Engineers Licensing of e ngineers and companies who are involved in 
layout and construction of facilities. 
The Association of Hunters  Registration, issuance of hunting permits for foreign citizens. 
The Veterinary Chamber  Licensing (registration) of veterinarians. 
 
 
_______________ 
 
 WT/ACC/CGR/38 
WT/MIN(11)/7 Page 90 
 
 
 Draft Decision 
ACCESSION OF MONTENEGRO 
Decision of [17 December 2011] 
 The Ministerial Conference, 
 Having regard to  paragraph 2 of Article XII and pa ragraph 1 of Article IX of the 
Marrakesh Agreement Establishing the World Trade Organization (the "WTO Agreement"), and the 
Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed by the General Council (WT/L/93); 
 Taking note  of the application of Montenegro for accession to the WTO Agreement dated 
23 December 2004; 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of Montenegro to the WTO Agreement and having prepared a draft Protocol on the Accession of Montenegro; 
 Decides  as follows: 
 Montenegro may accede to the WTO Agreement on the terms and conditions set-out in the 
Protocol annexed to this Decision. 
_______________  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 91 
 
 
 DRAFT PROTOCOL 
ON THE ACCESSION OF MONTENEGRO 
Preamble 
 The World Trade Organization (hereinafter referr ed to as the "WTO"), pursuant to the approval 
of the Ministerial Conference of  the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereinafter referred to as the "WTO Agreement"), and 
Montenegro,  
 Taking note of the Report of the Working Party on the Accession of Montenegro to the 
WTO Agreement reproduced in document WT/ACC/ CGR/38, dated 5 Decemb er 2011 (hereinafter 
referred to as the "W orking Party Report"), 
 Having regard to the results of the negotiations on the accession of Montenegro to the 
WTO Agreement,  
 Agree as follows: 
PART I - GENERAL 
1. Upon entry into force of this Protocol pursu ant to paragraph 8, Montenegro accedes to the 
WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of the 
WTO.  
2. The WTO Agreement to which Montenegro accedes shall be the WTO Agreement, including 
the Explanatory Notes to that Agreement, as rectif ied, amended or otherwise modified by such legal 
instruments as may have entered into force before the date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred to in paragraph 281 of the Working Party 
Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwis e provided for in paragraph 281 of  the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by Montenegro as if it had accepted that Agreement on the date of its entry into force. 
4. Montenegro may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure was recorded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions. 
PART II - SCHEDULES 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitments annexed to the General Agreement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to Montenegro.  
The staging of the concessions and commitments lis ted in the Schedules sh all be implemented as 
specified in the relevant parts of the respective Schedules. WT/ACC/CGR/38 
WT/MIN(11)/7 Page 92 
 
 
 6. For the purpose of the reference in paragraph 6(a)  of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Conc essions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
PART III - FINAL PROVISIONS 
7. This Protocol shall be open for acceptance, by signature or otherwise, by Montenegro until 
31 March 2012. 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by Montenegro.  
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by 
Montenegro thereto pursuant to paragraph 7 to each Member of the WTO and to Montenegro.   
 This Protocol shall be registered in accordance with the provisions of Ar ticle 102 of the Charter 
of the United Nations.   
 Done at Geneva this [seventeenth] day of [De cember two thousand and eleven], in a single copy 
in the English, French and Spanis h languages, each text being authentic , except that a Schedule annexed 
hereto may specify that it its authen tic in only one of these languages. 
_______________  WT/ACC/CGR/38 
 WT/MIN(11)/7 
 Page 93 
 
 
 ANNEX I 
SCHEDULE CLXVI - MONTENEGRO 
Authentic only in the English language. 
(Circulated in document WT/ACC/CGR/38/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the English language. 
(Circulated in document WT/ACC/CGR/38/Add.2)  
__________